UC-NRLF 


HJ 


A? 


POCUMEN1S 
OEPT. 


ID  7 


REPORT 


OF 


COMMITTEE  TO  INVESTIGATE 

ASSESSMENT  AND  TAXATION 

STATE  OF  TENNESSEE 


1915 


DOCUMENTS 
DEPT. 


REPORT 


OF 


COMMITTEE  TO  INVESTIGATE 

ASSESSMENT  AND  TAXATION 

STATE  OF  TENNESSEE 
1915 


NASHVILLE,  TENN. 
McQUIDDY  PRINTING  CO. 

1915 


A7 


DEP1. 


REPORT  OF  COMMITTEE  TO  INVESTI- 
GATE ASSESSMENT  AND  TAXATION. 


To  His  Excellency,  Governor  Tom  C.  Rye,  and  to  the  Fifty- 
ninth  General  Assembly  of  Tennessee: 

This  Committee,  to  investigate  the  question  of  Assessment 
and  Taxation  in  the  State,  was  appointed  by  the  Governor 
in  pursuance  of  Senate  Joint  Resolution  No.  27,  adopted  on 
January  26,  1915,  the  text  of  which  will  be  found  in  the 
Appendix  attached  to  this  report. 

The  Committee  assembled  in  Nashville  on  February  1,  and 
during  the  period  which  has  elapsed  since  that  time  many 
officials  and  citizens  have  appeared  before  the  Committee  or 
submitted  their  views  in  writing.  Public  hearings  have 
been  given  to  representatives  of  many  organizations  and  to 
others,  and  a  large  number  of  letters  on  the  subject  of  tax- 
ation have  been  received.  Because  of  the  short  period  of 
time  available  in  which  to  investigate  our  present  system  of 
assessments  in  this  State  and  consider  the  subject  of  tax- 
ation generally,  the  Committee  has  not  been  able  to  make 
as  comprehensive  a  study  of  the  subject  as  it  might  have 
desired.  The  Tax  Commission  of  Virginia,  which  has  re- 
cently reported  to  the  Legislature  of  that  State,  consumed 
seven  months  on  a  similar  investigation.  A  Tax  Commis- 
sion in  another  neighboring  State,  Kentucky,  was  engaged 
in  such  an  investigation  during  a  period  of  about  a  year  and 
a  half.  In  other  States  a  much  longer  time  than  has  been 
available  for  this  Committee  was  consumed. 

Realizing,  therefore,  that  its  work  must  be  hurried,  this 
Committee  has  not  hesitated  to  take  short  cuts  in  the  pur- 
suit of  information,  and  has  drawn  liberally  on  the  reports 
of  Commissions  of  similar  character  in  other  States.  We 
do  not  believe,  however,  it  would  be  profitable  to  delay  the 
matter  of  tax  reform  in  Tennessee  for  a  more  exhaustive 


581651 


COMMITTEE  ox  TAXATION. 

study  of  the  conditions  in  this  and  other  States.  To  do  so 
would  entail  a  considerable  expense,  and  would  also  post- 
pone the  time  when  taxation  might  be  equalized  throughout 
the  State.  Moreover,  the  evils  in  our  present  system  of  tax- 
ation are  not  confined  to  this  State,  but  are  general  to  those 
States  which  have  similar  systems,  and  are  well  known  to 
all  the  people  of  the  State  who  have  paid  attention  to  the 
subject. 

MAIN  DEFECTS  IN  PRESENT  LAW. 

The  testimony  in  hearings  held  by  the  Committee  in  Nash- 
ville and  our  correspondence  with  assessors,  other  officials, 
and  citizens  residing  in  all  parts  of  the  State,  have  strongly 
confirmed  the  opinions  which  were  entertained  by  members 
of  the  Committee  at  the  outset  as  to  what  in  general  were 
the  defects  of  our  present  tax  laws.  Concerning  them  there 
is  little  controversy.  As  stated,  all  Commonwealths  which 
levy  what  is  known  as  a  general  property  tax — that  is,  a  tax 
at  uniform  rate  levied  on  all  classes  of  property — have  had 
strikingly  similar  experiences.  Yet  most  of  the  States  of 
the  American  Union  continue  wedded  to  this  system.  It  is 
embedded  in  most  of  the  State  Constitutions,  as  in  our  own. 
Only  nine  States  so  far  have  broken  away  from  this  gen- 
eral property  system.  The  latest  of  these  is  Virginia,  which, 
in  pursuance  of  recommendations  of  its  Tax  Commission, 
recently  has  completely  abandoned  the  general  property 
tax  and  has  adopted  a  system  by  which  the  State  Government 
in  the  main  will  derive  its  revenue  from  different  properties 
than  do  the  local  subdivisions.  Where  the  segregated  or 
separated  system  prevails,  the  State,  as  a  rule,  derives  its 
revenues  entirely  from  the  taxation  of  public-service  and 
other  corporations  and  inheritance  and  various  special  taxes, 
while  the  taxation  of  real  estate  is  resorted  to  only  in  the 
counties  and  cities.  The  plan  differs  much  in  detail  in  dif- 
ferent States.  The  chief  advantage  of  this  system  is  that 
it  renders  unnecessary  the  equalization  of  assessments  In 
counties  or  subdivisions  for  the  equal  apportionment  of  State 
taxes. 

The  system  of  taxation  adopted  under  our  first  Constitu- 


COMMITTEE  ON  TAXATION. 

lion  in  1796  was  simple.  There  was  then  scarcely  any  per- 
sonal property  except  slaves.  A  specific  tax  on  land  was  the 
principal  tax,  and  town  lots  could  not  be  taxed  more  than  200 
acres  of  land.  The  tax  on  a  slave  was  also  limited  to  that  on 
200  acres.  This  was  the  system  inherited^  from  the  parent 
State  of  North  Carolina.  By  1834,  however,  there  existed 
much  more  personal  property,  tangible  and  intangible;  and 
the  Constitution  of  that  year  contained  an  article  paving  the 
way  for  the  general  property  tax,  which  was  finally  made 
mandatory  by  the  Constitution  of  1870.  We  borrowed  this 
tax  from  Europe,  as  did  other  American  States ;  but  it  is  now 
practically  obsolete  abroad,  being  suited  only  to  primitive 
economic  conditions.  The  old  general  property  tax,  in  fact, 
survives  only  in  Switzerland,  Australia,  and  the  United 
States,  in  all  of  which  it  has  become  so  defective  that  it  has 
been  supplemented  with  other  taxes.'  Dr.  Edwin  R.  A. 
Seligman,  probably  the  country's  most  eminent  authority  on 
taxation,  says  of  this  system : 

"  The  general  property  tax  as  actually  administered  is, 
beyond  all  doubt,  one  of  the  worst  taxes  known  in  the  civi- 
lized world.  Because  of  its  attempt  to  tax  intangible  as  well 
as  tangible  things,  it  sins  against  the  cardinal  rules  of  uni- 
formity, of  equality,  and  of  universality  of  taxation.  It 
puts  a  premium  on  dishonesty  and  debauches  the  public  con- 
science ;  it  reduces  deception  to  a  system  and  makes  a  science 
of  knavery ;  it  presses  hardest  on  those  least  able  to  pay ;  it 
imposes  double  taxation  on  one  man  and  grants  entire  im- 
munity to  the  next.  In  short,  the  general  property  tax  is 
so  flagrantly  inequitable  that  its  retention  can  be  explained 
only  through  ignorance  or  inertia.  It  is  the  cause  of  such 
crying  injustice  that  its  alteration  or  its  abolition  must  be- 
come the  battle  cry  of  every  statesman  and  reformer." 

NEW  CONSTITUTION  DESIRABLE. 

We  must  necessarily  state  at  the  outset  that  anything  like 
a  complete  and  thoroughly  effective  reform  of  our  tax  sys- 
tem cannot  now  be  obtained.  When  this  State  adopts  a 
Constitution  with  a  more  flexible  article  on  the  subject  of 

5 


COMMITTEE  ox  TAXATION. 

taxation,  then  may  we  consider  for  adoption  many  of  the 
excellent  provisions  such  as  have  gone  into  beneficial  effect 
in  States  like  Wisconsin,  Minnesota,  Ohio,  Oregon,  Penn- 
sylvania, California,  Connecticut,  New  York,  New  Jersey, 
and  Maryland,  and  are  soon  to  go  into  effect  in  Virginia. 
Our  recommendations,  therefore,  are  largely  devoted  to  the 
promotion  of  efficiency  under  the  present  system.  We  have 
also  suggested  a  plan,  outlined  later,  which  we  feel  sure  is 
permissible  under  the  Constitution,  and  yet  will  bring  us 
many  of  the  benefits  secured  in  other  ways  by  the  States  that 
have  wholly  or  partially,  escaped  from  the  toils  of  the  gen- 
eral property  tax.  The  bill  we  have  drawn  as  a  suggestion 
to  the  Legislature  will  be  found  in  the  Appendix. 

A  CENTRAL  COMMISSION. 

The  most  important  of  these  recommendations  to  improve 
efficiency,  we  feel  sure,  is  for  the  establishment  of  a  perma- 
nent Tax  Commission  to  have  complete  charge  of  the  admin- 
istration of  the  tax  laws.  This  recommendation,  as  will 
be  seen  by  reference  to  the  Appendix,  is  in  harmony  with 
the  declarations  of  all  the  leading  political  parties  in  the 
State  in  the  last  political  campaign,  and  was  ably  urged  by 
the  Governor  in  his  message  to  the  Legislature  following  his 
inauguration.  Practically  every  person  appearing  before  the 
Committee  who  has  studied  our  tax  system,  or  who  now 
has  a  part  in  its  operation,  indorsed  the  proposal.  We  be- 
lieve that  this  is  the  first  and  most  important  step  to  be 
taken  for  the  equalization  of  taxation  throughout  the  State. 
Without  such  a  commission  to  supervise  the  operation  of  the 
tax  laws  in  Tennessee,  there  will  continue  to  exist  grave  in- 
equalities, causing  much  complaint.  The  establishment  of 
a  permanent  Tax  Commission,  which  shall  have  among  its 
duties  also  the  investigation  of  systems  of  taxation  in  other 
States  and  the  making  of  frequent  reports  to  the  Governor, 
will  inevitably  bring  about  further  improvements  in  our 
tax  laws,  and,  we  believe,  the  adoption  at  some  time  in  the 
near  future  of  many  of  the  best  features  of  the  tax  systems 
of  other  States. 


COMMITTEE  ox  TAXATION. 

The  assessment  law  of  1907,  which  is  the  present  law,  is 
an  amendment  of  the  assessment  law  of  1903,  which,  in  turn, 
was  an  amendment  of  the  law  of  1899  and  that  of  1895. 
Amendments  of  more  or  less  importance  were  passed  in 
other  years.  The  chief  weakness  is  the  lack  of  provision  for 
a  central  board  to  direct  the  work  of  assessors  over  the  State. 


MAKING  REASSESSMENT  UNNECESSARY. 

The  two  features  of  the  present  law  which  seem  to  give 
rise  to  most  criticism  are  the  inequalities  in  assessments 
and  the  practice  of  reassessment.  We  have  come  to  the 
unanimous  conclusion  that  the  only  means  by  which  prop- 
erty may  be  equitably  and  adequately  assessed  is  by  secur- 
ing such  assessment  at  the  beginning ;  and  we  are  confident 
that  through  an  improved  system  of  making  the  original 
assessments,  followed  by  proper  equalization  in  the  county 
where  the  assessments  are  made,  and  finally  by  the  Tax 
Commission,  the  need  of  back  assessments  will  be  removed. 
We  are  recommending,  therefore,  that  after  payment  oi 
taxes  the  receipt  shall  be  a  finality.  The  State  may  lose  a 
small  sum  by  declining  to  reassess  property,  but  it  now 
loses,  we  believe,  much  more  because  of  the  general  unrest 
of  taxpayers  through  the  fear  of  back  assessment,  for  it  is  a 
notorious  fact  that  very  little  of  the  property  of  Tennessee 
of  any  class  is  now  assessed  at  its  actual  cash  value. 

Reassessment  after  the  payment  of  taxes  violates  that 
canon  of  just  taxation  as  stated  by  Adam  Smith :  "  The  tax 
each  individual  is  bound  to  pay  ought  to  be  certain  and  not 
arbitrary."  Capital  flies  from  any  State  where  there  is  no 
fixedness  of  taxes.  It  is  against  public  policy  for  the  tax- 
gatherer  to  harass  business  or  industry  by  repeated  visits. 
Those  who  commit  perjury  or  actual  fraud  in  evading  taxe's 
should  be  prosecuted  criminally,  and  the  State  should  also 
collect  civil  damages  from  such.  An  efficient  tax  commis- 
sion will  see  that  such  persons  are  so  proceeded  against. 
They  may  be  reached,  we  believe,  under  the  general  provi- 
sions of  the  law. 


COMMITTEE  ON  TAXATION. 

"ACTUAL  CASH  VALUE." 

Though  no  words  in  the  assessment  law  are  more  fre- 
quently used  than  "actual  cash  value,"  nothing,  in  fact,  is 
so  rare  as  an  actual-cash-value  assessment.  If  any  such  are 
on  the  assessment  rolls,  it  is  through  accident  or  mistake  of 
the  assessor.  These  officials  freely  admitted  to  this  Com- 
mittee that,  despite  their  official  oaths,  taken  not  only  be- 
fore the  beginning  of  their  work,  but  after  its  completion, 
property,  instead  of  being  assessed  as  required  by  law,  at  its 
actual  cash  value,  was  assessed  by  them,  in  the  case  of  indi- 
vidual properties,  all  the  way  from  10  to  80  per  cent.  In 
the  cases  of  whole  counties  there  were  frequent  admissions 
by  assessors  and  others  that  the  tax  aggregate  did  not  con- 
stitute more  than  25  per  cent  of  the  value  of  the  property 
in  the  county,  and  in  no  case  did  any  assessor  state  that  the 
tax  aggregate  constituted  more  than  60  per  cent  of  the  value. 
One  candid  official,  whose  conscience  had  worried  him  some- 
what at  the  wording  of  the  oath,  struck  his  pen  through  the 
word  "  cash  "  and  returned  his  assessment  as  at  the  "  actual 
tax  value  "  of  the  property. 


WORK  OF  ASSESSORS. 

We  would  not  have  it  thought  that  we  in  the  slightest  de- 
gree impugn  the  character  of  our  county  assessors  as  a  class. 
As  a  rule,  they  are  men  of  as  high  character  as  the  average 
in  their  communities.  In  many  counties  they  are  paid 
wretchedly,  and  for  the  remuneration  they  receive  their 
work  may  be  considered  good ;  and,  in  many  cases,  they  have 
rendered  services  of  a  most  excellent  character,  showing  sur- 
prising efficiency  in  view  of  all  the  conditions  under  which 
the  assessment  is  made.  It  is  not  creditable  to  Tennessee 
that  men  elected  to  the  offices  of  assessor,  to  whom  are  in- 
trusted the  important  duties  of  valuing  all  of  the  property 
of  the  taxpayers  in  their  counties,  are  in  many  cases  paid 
at  rates  not  much  better  than  are  the  farm  hands  of  their 
counties.  Under  the  law  they  are  allowed  only  four  months 
and  twenty  days  in  which  to  make  their  assessments.  They 
must  begin  work  in  the  dead  of  winter,  when  roads  fre- 

8 


COMMITTEE  ON  TAXATION. 

quently  are  impassable.  They  are  required  to  go  on  every 
piece  of  property,  see  all  taxpayers  and  require  them  to 
fill  out  their  schedules  as  provided  by  law.  The  present 
law  has  many  rigorous  provisions  to  compel  the  taxpayer 
to  fill  out  these  schedules  and  to  require  the  assessor  to 
see  the  taxpayer  and  force  him  to  do  his  duty.  But  its 
provisions  for  many  reasons  are  loosely  observed.  In  many 
counties  assessors  must  employ  deputies  to  assist  them,  and 
in  such  cases  their  earnings  are  reduced  to  a  minimum. 
The  fact  was  brought  out  in  the  investigation  before  this 
Committee  that  in  many  counties  the  County  Court  Clerks 
received  more  for  copying  the  tax  books  than  did  the  as- 
sessors for  their  laborious  work  of  assessment.  How  may 
we  expect  the  property  of  taxpayers  in  Tennessee  to  be 
properly  assessed  until  we  constitute  the  assessor's  office 
one  of  greater  dignity,  allow  him  respectable  quarters  at  the 
courthouse,  pay  him  more  adequately  for  work  which  re- 
quires scrupulous  honesty,  more  than  ordinary  capacity, 
and  painstaking  care,  and  give  him  more  time  in  which  to 
make  the  assessment?  Because  of  the  fact  that  assessment 
work  is  arduous  and  difficult  and  is  poorly  paid,  too  many 
assessors  have  taken  the  easiest  way  to  complete  their  tasks 
and  have  merely  copied  the  old  books.  The  assessor  must 
constantly  resist  the  efforts  of  thrifty  tax  dodgers  who  dog 
his  footsteps  with  pleas  for  reductions.  It  was  reported  to 
this  Committee  that  an  investigation  of  the  assessments  in 
several  counties  in  one  of  the  grand  divisions  of  the  State 
showed  that  the  property  of  estates  and  of  widows  and  or- 
phans, where  the  taxes  were  paid  without  question,  were 
more  highly  assessed  in  proportion  to  value  than  any  other 
classes  of  property.  It  is  the  general  consensus  of  opinion 
that  the  larger  property  owners  throughout  the  State  do  not 
pay  on  assessments  as  high  in  proportion  to  real  values  as 
the  owners  of  small  farms  and  small  homes  in  cities.  This 
is  not  due  to  any  wilful  discrimination  on  the  part  of  the 
assessors,  but  because  the  value  of  smaller  properties  is 
more  easily  arrived  at  than  that  of  larger  properties,  and 
also  from  the  fact  that  the  assessor  has  more  pressure 
brought  to  bear  on  him  by  larger  property  owners  than  by 


[ITTEE    ON 


small  property  owners,  and  unconsciously  is  influenced  there- 
by. But  the  fact  is  lamentable,  and  leads  to  the  inevitable 
conclusion  that  the  assessment  work  of  the  State  needs  su- 
pervision, and  that  the  assessors  should  be  permitted  to 
give  more  time  to  the  assessments  and  be  better  paid  there- 
for. The  so-called  "  Boards  of  Equalizations,"  appointed  by 
the  County  Courts  and  the  municipalities,  do  not  help  mat- 
ters. They  frequently  prove  only  boards  of  reduction  and 
undo  good  work  on  the  part  of  the  assessor.  It  is  nearly 
always  the  case  that  considerable  property  interests  secure 
representation  on  such  boards.  And  the  ulterior  purpose 
for  which  such  appointments  are  sought  is  usually  made 
plain  before  the  books  are  closed. 

ASSESSMENTS  MUCH  BELOW  VALUE. 

It  is  not  surprising,  therefore,  that,  despite  the  advances 
in  the  values  of  land  all  over  the  State,  which  are  well  known 
to  all  who  have  investigated  the  subject,  the  tax  aggregate 
has  grown  very  slowly,  most  of  the  increases,  as  shown,  be- 
ing in  the  assessments  of  city  property.  In  fact,  the  Comp- 
troller's report  for  1914  shows  that  thirty-one  counties  re- 
duced their  average  acreage  assessment  between  1913  and 
1914,  and  that  there  were  actually  six  counties  which  were 
assessed  at  less  per  acre  on  acreage  property  in  1914  than 
in  1879.  In  the  ten  years  between  1904  and  1914  the  total 
assessments  of  the  State  increased  from  $429,767,706  to 
§672,754,691,  or  56.5  per  cent.  This  is  not  an  increase  com- 
mensurate with  the  growth  of  wealth.  According  to  the 
Federal  census,  the  capital  invested  in  manufactures  in  Ten- 
nessee was  $63,141,000  in  1899  and  $167,924,000  in  1909— 
an  increase  of  166  per  cent.  The  value  of  farm  property 
in  1900  was  $341,202,025,  and  in  1910  it  was  $612,520,836— 
an  increase  of  79  per  cent.  The  average  acreage  assessment 
now  is  less  than  $9. 

These  figures  speak  for  themselves.     Our  property  every 
year  is  assessed  on  a  lower  basis  compared  to  value. 

In  addition,  statements  of  assessors  before  this  Commit- 
tee show  that  in  many  cases  throughout  the  State  the  bases 

10 


COMMITTEE  ON  TAXATION. 

of  assessment  in  counties  adjoining  one  another  vary  be- 
tween 25  per  cent  and  60  per  cent  of  the  actual  value  of  the 
property  in  those  counties.  The  game  of  dodging  a  fair 
share  of  State  taxes  is  being  played  all  over  the  State,  just 
as  most  individuals  dodge  taxes  in  their  individual  assess- 
ments ;  and  such  a  thing  as  actual-cash-value  assessments  in 
accordance  with  the  assessment  law  of  1907  is  practically 
unknown  anywhere.  In  fact,  numerous  assessors  testified 
that  they  dared  not  assess  property  at  its  actual  cash  value ; 
for,  if  they  did,  they  were  certain  to  lose  their  official  posi- 
tions at  the  next  election — if,  indeed,  they  were  not  before 
that  time  run  out  of  the  county.  We  are  unable  to  furnish 
statistics  as  to  the  actual  value  of  property  in  Tennessee  as 
compared  with  the  assessment,  but  from  those  collected  by 
its  agents  the  Federal  Census  Bureau  estimates  that  the  as- 
sessed value  of  property  is  about  38  per  cent  of  the  actual 
value  of  property  in  the  State.  We  are  inclined  to  the  be- 
lief, however,  from  admissions  made  by  assessors  and  tax- 
payers who  have  come  before  this  Committee,  that  this  esti- 
mate is  much  too  high. 

One  State  Board  of  Equalization,  consisting  of  Governor, 
Treasurer,  and  Secretary  of  State,  equalizes  the  assessment 
made  by  the  Railroad  Commission ;  and  another  State  Board 
of  Equalization,  consisting  of  Comptroller,  Secretary  of 
State,  and  Treasurer,  equalizes  all  other  property.  Both 
these  boards  have  done  careful  and  conscientious  work,  but 
it  is  hardly  to  be  expected  that  in  the  limited  time  these  offi- 
cials can  give  to  taxation  they  can  do  as  efficient  service  as 
could  a  tax  commission  which  studies  values  all  the  year 
round.  Nor  do  these  boards  influence  the  initial  assessments, 
and  the  experience  of  all  States  is  that  unless  assessments 
are  efficiently  made  at  the  outset,  the  equalization  will  be 
difficult,  if  not  impossible.  In  1895  the  State  Board  of  Equal- 
ization was  given  power  to  raise  or  lower  counties,  but  this 
was  taken  away  in  1897.  The  power  should  be  vested  on  the 
Tax  Commission;  but  if  assessments  are  made  properly,  it 
need  never  be  exercised. 

11 


SOME  MARKED  INCONSISTENCIES. 

Differences  in  valuation  of  a  marked  nature  exist  in 
counties  in  the  same  grand  division,  and  often  between 
close  neighbors.  For  instance,  in  Greene  County  the  value 
of  all  farm  property,  as  shown  by  the  Federal  census  of 
1910,  is  about  five  times  as  great  as  the  assessment  of 
acreage  for  taxation,  while  in  Campbell  County  the  as- 
sessment was  nearly  as  much  as  the  value  of  the  farm 
property.  In  Hamilton  County  the  assessment  was  a  little 
more  than  the  value  of  the  farm  property,  while  in  Knox 
County  it  was  only  one-half  as  much.  In  Cumberland 
County  the  assessment  was  about  four-fifths  the  value  of  all 
farm  property,  while  in  White  County  it  was  only  one- 
fourth  as  much.  Sumner  and  Bedford  showed  about  one- 
fourth;  Benton,  one-third;  Davidson,  one-half;  Lake  showed 
one-half;  and  Lauderdale,  one-third.  There  probably  are 
good  explanations  for  some  of  these  differences,  but  we  be- 
lieve a  careful  analysis  of  all  these  figures  such  as  might  be 
made  by  a  permanent  Tax  Commission  would  be  very  useful 
in  more  nearly  bringing  about  uniformity  of  assessment  in 
proportion  to  value,  and  would  put  a  stop  to  the  very  gross 
injustice  that  is  now  being  practiced  against  those  counties 
which,  in  reality,  pay  a  part  of  the  taxes  of  the  counties  that 
are  underassessed. 

IN  LARGER  COUNTIES. 

In  the  larger  counties,  where  assessors  are  more  ade- 
quately paid  and  are  better  trained  for  their  duties,  and 
where  they  keep  open  office  at  the  courthouse  for  the  year 
around,  assessments  are  more  efficiently  made.  Further- 
more, by  reason  of  the  increasing  costs  of  city  and  county 
governments,  powerful  influences  have  been  brought  to  bear 
on  assessors  in  counties  containing  considerable  municipal- 
ities for  higher  assessments,  and  the  result  has  been  that 
these  counties  are  assessed  much  more  nearly  at  their  true 
values  than  in  those  counties  where  no  such  influences  are  at 
work. 

Nevertheless,  even  in  the  urban  counties  the  law  has  not 

12 


COMMITTEE  ox  TAXATION. 

been  as  carefully  followed  as  it  would  be  if  there  were  State 
supervision;  and,  undoubtedly,  more  adequate  equalization 
of  individual  pieces  of  property  is  needed,  as  well  as  the  dis- 
covery and  placing  on  the  tax  books  of  large  amounts  of 
city  property  taxable  under  the  law  which  now  in  great 
measure  escapes.  Indeed,  any  complete  assessment  of  the 
State  will  bring  much  more  property  out  of  hiding  in  cities 
than  elsewhere.  The  only  personal  property  which  is  at  all 
adequately  assessed  in  the  cities  is  bank  stocks ;  but  the  rate 
on  these  varies  all  over  the  State,  ranging  from  50  to  100 
per  cent.  This  undoubtedly  should  be  made  uniform.  Un- 
der our  present  tax  laws,  credits  and  securities  of  all  kinds 
are  held  to  be  property  as  much  as  is  real  estate.  Very  lit- 
tle of  this  is  assessed,  but  that  which  does  go  on  the  tax  books 
is  assessed  at  its  full  value.  Frequently,  in  the  case  of 
wealthy  citizens,  the  amount  of  a  man's  personal  property 
is  not  brought  to  light  until  after  his  death,  and  his  family 
is  then  humiliated  by  a  reassessment  action.  As  long  as  the 
total  rate  of  taxation  for  all  purposes  in  the  more  populous 
communities  ranges  from  21/2  to  4 1/2  per  cent  on  the  prop- 
erty returned  for  taxation,  the  owner  of  a  bond  bringing 
4  to  5  per  cent,  or  even  of  a  note  bringing  6  per  cent,  will 
not  voluntarily  submit  to  assessment.  To  do  so  would  be 
to  suffer  confiscation  of  all  or  nearly  all  the  income.  It  is 
a  self-evident  fact  that  if  such  property  could  by  drastic  laws 
effectively  be  reached,  it  would  fly  the  State,  frequently  the 
owner  with  it.  In  fact,  in  nearly  all  the  richer  States, 
where  this  class  of  property  exists  to  a  much  larger  degree 
than  in  Tennessee,  the  effort  to  reach  and  assess  such  prop- 
erty has  been  abandoned,  and  a  special  tax  at  a  lower  rate 
is  levied  on  it.  In  Ohio,  with  a  system  somewhat  like  ours, 
after  many  years  of  efforts  to  disclose  this  class  of  property, 
a  large  amount  of  it  finally  has  been  brought  from  hiding 
through  the  simple  device  of  actual-cash-value  assessments 
and  a  limited  rate.  In  the  city  of  Baltimore,  after  personal 
property  was  placed  in  a  class  by  itself  and  taxed  at  a  very 
low  rate,  the  assessments  of  this  class  of  property  in  eleven 
years  increased  from  about  $6,000,000  to  about  $150,900,- 

13 


COMMITTEE  ON  TAXATION. 

000,  and  the  revenue  of  this  city  from  this  source  increased 
sixfold. 

In  1892  the  percentage  of  our  taxes  collected  from  per- 
sonal, property  was  just  about  the  same  it  is  to-day — 13  per 
cent.  There  has  been  no  increase,  despite  the  drastic  laws 
enacted.  Indeed,  were  such  laws  to  be  enforced,  the  State 
would  be  done  much  harm  by  the  loss  of  capital.  Such  prop- 
erty, of  course,  should  be  made  to  bear  a  fair  share  of  the 
burden  of  taxation ;  and  this,  we  believe,  may  be  done  in  the 
manner  we  are  suggesting  elsewhere  in  this  report. 

DOUBLE  TAXATION. 

Undoubtedly,  no  argument  can  be  made  in  defense  of  our 
laws  against  the  charge  of  double  taxation.  The  owner  of 
real  estate  is  taxed  on  the  value  of  the  property,  and  the 
mortgagee  is  taxed  on  the  value  of  that  property  also.  The 
purchaser  of  a  piece  of  property  is  taxed  on  the  property, 
and  the  holder  of  vendor's  lien  notes  is  also  taxed  on  that 
property.  So,  also,  in  the  case  of  our  corporations,  under 
the  present  law  we  levy  a  tax  on  the  value  of  the  stock,  also 
on  the  bonds  of  the  corporation,  while  the  bonds  are  also 
taxed  in  the  hands  of  the  individual  bondholders.  It  is  true 
that  none  of  these  provisions  of  our  present  laws  have  been 
so  enforced  as  to  constitute  a  discrimination  or  injustice, 
except  in  rare  instances.  But  the  presence  of  such  provi- 
sions in  our  statutes  act  so  as  to  deter  capital  seeking  in- 
vestment ;  and  as  we  are  endeavoring  to  make  our  tax  laws 
enforceable,  and  enforce  them,  as  we  are  proposing  to  do 
all  laws  in  the  State  of  Tennessee,  this  Commission  has  felt 
that  these  provisions  ought  to  be  considered  with  the  great- 
est care. 

It  has  been  freely  charged  before  us  that  a  great  in- 
dustrial corporation  was  driven  out  of  the  State  because 
of  being  back  assessed  on  both  the  value  of  the  stock  and 
its  bonded  debt,  which  was  very  large.  The  officials  of  this 
county  farmed  out  the  tax  in  a  method  truly  medieval, 
agreeing  that  attorneys  should  have  all  over  a  fixed  sum. 
The  company  finally  settled  for  much  less  than  at  first  de- 
manded; but  now  the  smoke  no  longer  rolls  over  the  coke 

14 


CoM.HlTTKi:    ON     TAXATION. 

ovens  of  this  formerly  very  important  plant.  No  doubt, 
however,  there  were  other  reasons  besides  the  harassment  of 
back  assessment  and  the  ambiguity  of  our  tax  laws  that 
finally  induced  this  company  to  withdraw  its  business  from 
Tennessee,  but  the  fact  remains  that  it  is  gone. 

In  drawing  the  new  bill,  we  have  made  a  distinction  be- 
tween public-service  and  private  corporations. 

SWORD  OF  DAMOCLES. 

We  do  not  join  in  any  indiscriminate  criticism  of  revenue 
agents  or  their  attorneys  who  have  acted  conscientiously 
and  in  compliance  with  their  duties  under  the  law,  but  we 
think  it  will  be  well  to  abolish  this  system  which  has  caused 
much  just  complaint.  While  the  attainment  of  the  ideal  of 
cash-value  assessments,  we  fully  realize,  is  most  difficult, 
nevertheless  we  believe  that  with  the  improved  assessment 
system  proposed  in  our  bill  it  may  be  closely  approached. 
To  attempt  any  assessment  otherwise  than  at  its  actual  cash 
value  is  of  doubtful  expediency.  But  we  should  bear  in 
mind  that  while  a  provision  for  actual-cash-value  assess- 
ments is  retained  on  the  statute  books  and  taxpayers  are  not 
assessed  at  their  actual  cash  value,  it  leaves  suspended  over 
the  head  of  practically  every  taxpayer  the  traditional  sword 
of  Damocles,  ready  to  fall  on  the  unsuspecting  and  unoffend- 
ing taxpayer  at  any  moment.  Under  decisions  of  our  Ten- 
nessee courts,  no  citizen  may  obtain  redress  on  account  of 
increased  assessment,  unless  he  is  able  to  show  that  his  prop- 
erty has  been  assessed  at  more  than  its  cash  value.  It  does 
not  relieve  him  that  other  property  in  his  county  or  in  the 
State  has  been  assessed  at  less  than  its  cash  value.  The  hold- 
ings of  our  courts  have  been  that  the  only  standard  is  the 
question  whether  or  not  in  his  own  assessment  the  law  has 
been  violated.  So  it  is  that  at  the  present  time  various  offi- 
cials have  it  within  their  power  for  personal  or  political  rea- 
sons to  persecute  any  taxpayer  in  the  State  who  is  not  fully 
assessed,  and  this  includes  most  taxpayers.  That  such  cases 
of  persecution  are  very  rare  is  due  not  to  any  protection 
contained  in  the  law,  but  only  to  the  restraint  of  the  officials. 
Such  instances  do  occur,  however.  One  was  reported  to  this 

15 


COMMITTEE  ON  TAXATION. 

Committee  where  an  assessor,  who  had  just  applied  for  a 
job  with  a  mining  company  and  had  not  been  employed, 
increased  the  assessment  of  that  company  from  $109,000  to 
$500,000,  despite  the  fact  that  other  property  in  the  same 
county  was  assessed  at  a  ridiculously  low  figure  and  not  at 
all  in  comparison  with  the  increased  assessment  of  the  min- 
ing company.  It  was  with  the  greatest  difficulty  that  the 
attorneys  of  this  company  succeeded  in  having  a  portion  of 
the  increased  assessment  removed. 

The  only  true  basis  of  assessments,  in  our  opinion,  is  the 
actual  cash  value  of  property.  This,  of  course,  presupposes 
some  market  and  a  willingness  of  the  owner  to  sell  and  the 
probable  existence  of  a  purchaser  who  would  buy.  It  does 
not  mean  the  assessment  of  property  at  inflated  or  fictitious 
values,  but  means  the  establishment  of  reasonable  and  well- 
sustained  standards  of  value,  considering  income,  increment, 
depreciation,  possible  use,  etc.  Such  a  system  of  assess- 
ments, based  on  actual  cash  values,  is,  we  believe,  absolutely 
essential  to  equalization  all  over  the  State.  Furthermore, 
when  individual  property  everywhere  in  Tennessee  has  been 
brought  by  the  assessors,  working  under  the  instructions 
and  guidance  of  the  Tax  Commission,  to  a  basis  approxi- 
mating cash  values,  and  when  the  boards  of  equalization 
appointed  by  the  Tax  Commission,  as  provided  under  the 
law  we  recommend,  shall  have  equalized  this  property,  and 
when  the  Tax  Commission  itself  has  heard  complaints  and 
passed  on  them,  it  will  then  be  possible  for  the  central  tax- 
ing body,  through  personal  inspection  or  other  investigation, 
to  consider  counties  as  a  whole,  and,  in  cases  of  grave  in- 
equality, remedy  such  by  horizontal  increases  or  reductions 
of  assessment,  so  that  the  whole  State  may  be  placed  on  ex- 
actly the  same  footing.  Any  other  method  does  not  com- 
ply with  the  spirit  of  the  Constitution. 

ARBITER  OF  ALL  VALUES. 

In  order  to  bring  all  property  in  the  State  to  the  same 
basis  of  value,  we  think  that  it  will  be  necessary  to  make 
the  Tax  Commission  the  final  arbiter  in  the  equalization 
of  the  value  of  all  property  in  the  State;  and  this  Comi- 

16 


COMMITTEE  ON  TAXATION. 

mission  should  perform  the  functions  of  all  boards  of  equal- 
ization. We  do  not  under  our  proposed  plan  suggest  a 
change  in  the  methods  by  which  the  property  of  railroads 
and  quasi-public  corporations  shall  be  assessed.  However, 
we  have  recommended  that  this  property,  along  with  all 
other  property,  shall  be  equalized  by  the  Tax  Commission.  We 
have  not  changed  the  manner  of  assessment  of  merchants' 
taxes,  but  have  required  that  these  assessments  also  shall  be 
reported  to  the  Tax  Commission  for  the  purpose  of  equaliza- 
tion. At  the  present  time  no  provision  for  the  equalization 
of  the  assessments  for  this  very  important  class  of  property 
exists;  and,  indeed,  the  reports  do  not  even  contain  the  ag- 
gregate on  which  the  tax  is  collected. 

ORIGIN  OF  COMPLAINTS. 

For  many  years  there  has  been  severe  criticism  of  our  tax 
laws.  In  1895  a  revenue  commission  of  the  Legislature  made 
a  study  of  the  subject,  with  resulting  reform  amendments. 
It  removed  all  obscurity  as  to  the  assessing  of  foreign  cor- 
porations, and  they  had  no  further  fears  of  doing  business 
in  the  State.  In  1897  an  unjust  law,  compelling  corporations 
to  declare  dividends,  if  a  sufficient  sum  was  on  hand  to  pay 
4  per  cent,  was  repealed.  In  the  same  year  it  was  provided 
that  the  shares  of  stock  should  not  be  assessed  to  the  stock- 
holders. There  were  amendments  of  the  tax  laws  in  1899 
and  1903,  but  the  statute  enacted  in  1907  has  remained  on 
the  books  ever  since,  the  Act  passed  two  years  ago,  as  the 
result  of  much  agitation,  being  vetoed  by  the  Governor. 

MORE  LATITUDE  THAN  TAKEN. 

As  previously  noted,  the  chief  obstacle  to  any  funda- 
mental change  in  our  tax  laws  at  the  present  is  the  inflexible 
article  on  taxation  in  the  Constitution  of  1870.  However, 
more  latitude  is  given  under  this  instrument  than  has  been 
taken  by  any  Legislature  since  the  adoption  of  the  Consti- 
tution. And,  as  we  shall  indicate  later,  it  is  possible  under 
the  Constitution  to  make  some  marked  departures  in  the 
future,  as,  for  instance,  in  the  manner  of  taxing  stocks  and 

17 


COMMITTEE  ON  TAXATION. 

bonds,  and  also  in  the  manner  and  rate  of  taxing  the  prop- 
erty of  merchants. 

However,  most  of  the  criticism  against  the  present  taxing 
system  of  the  State,  of  course,  is  due  to  inefficiency  in  ad- 
ministration. Those  States  which  have  abandoned  the  de- 
centralized system  of  assessments,  to  which,  with  our  at- 
tachment to  local  self-government,  we  have  clung,  and  have 
adopted  the  commission  plan  we  are  recommending,  have 
accomplished  much  along  the  lines  of  tax  reform;  and  un- 
der such  central  supervision,  efficiency  is  so  increased  that 
the  complaint  against  general  property  tax  is  much  less 
heard. 

MANY  GOOD  FEATURES  TO  PRESENT  LAWS. 

Otherwise  our  present  system  of  taxation  in  most  respects 
is  one  of  the  most  liberal  that  has  been  devised  and  put  in 
operation  in  any  American  Commonwealth.  We  have  not 
had  time  to  examine  all  the  tax  laws  of  all  the  States,  but 
as  far  as  we  have  investigated  we  have  found  none  which 
makes  so  many  exemptions  of  property  as  the  State  of  Ten- 
nessee. In  no  other  State  of  which  we  have  knowledge  is 
the  product  of  the  soil  in  process  of  manufacture  exempted, 
though  we  have  not  carefully  investigated  the  laws  of  all 
the  States  in  this  respect.  The  framers  of  the  Constitution 
thought  this  should  apply  only  to  the  products  of  our  own 
soil ;  but  because  of  a  decision  of  the  Supreme  Court  of  the 
United  States  to  the  effect  that  we  could  not  discriminate 
against  the  products  of  the  soil  of  any  of  our  sister  States 
in  favor  of  that  of  our  own  State,  it  has  resulted  that  the 
manufacturer  is  required  to  pay  no  tax  on  any  products  of 
the  soil  which  he  has  in  his  possession  for  the  purpose  of 
manufacture.  And  this  has  been  held  to  apply  also  to  the 
finished  product  in  his  warehouse.  In  some  of  our  neigh- 
boring States  infant  industries  are  exempted  from  taxation 
for  periods  of  from  five  to  ten  years,  and  there  is  ample 
reason  for  such  exemption.  But  we  are  inclined  to  believe 
that  the  exemption  given  in  Tennessee  is  much  more  of  an 
encouragement  to  factories  than  that  given  in  neighboring 
States,  and  more  defensible  in  principle.  Tennessee's  laws 

18 


COMMITTEE  ON  TAXATION. 

are  liberal  to  manufacturers,  and  these  industries  are  rap- 
idly growing  in  our  State.  In  view  of  our  fertile  soil  and 
plenitude  of  agricultural  products,  in  view  also  of  the  im- 
mense areas  of  mineral  and  timber  lands  in  Tennessee,  fur- 
nishing cheap  raw  materials,  and  in  view  of  the  available 
horse  power  and  dependable  labor,  and  with  markets  close 
at  hand,  Tennessee  is  destined  to  be  a  great  manufacturing 
State.  It  is  wise  policy  for  the  Legislature  to  encourage 
these  industries,  and  this  policy  should  not  be  changed,  even 
if  the  State  adopts  a  new  Constitution. 

EXEMPTIONS  FARMERS  ENJOY. 

Besides  exemptions  made  in  favor  of  manufacturers,  more 
property  of  the  farmer  probably  is  exempted  than  of  any 
other  class.  Practically  all  the  smaller  farmers  of  the  State 
secure  exemptions  on  their  personal  property,  household 
goods,  tools,  implements,  stock,  etc.,  on  the  farm,  because 
of  the  constitutional  provision  which  exempts  $1,000  of  per- 
sonal property  in  the  hands  of  each  taxpayer.  None  of  Ten- 
nessee's neighboring  States  have  any  such  constitutional 
provision  or  make  such  exemptions.  In  those  States  such 
property  is  taxed  as  real  estate.  And  the  Tennessee  farmer 
thus  has  the  advantage.  He  is  also  exempted  from  taxa- 
tion on  the  products  of  the  soil  in  his  possession,  as  is  also 
his  immediate  vendee.  And  this  clause  has  been  given  an 
elastic  construction.  Large  values  in  farm  products  are 
thus  kept  off  the  assessment  books  by  reason  of  these  ex- 
emptions, and  wisely  so.  On  the  prosperity  of  no  class  of 
our  people  is  the  general  welfare  of  the  State  more  depend- 
ent than  on  that  of  the  farmer,  and  he  should  always  be 
protected.  But  the  $1,000  exemption  of  personal  property, 
while  a  justifiable  aid  to  the  small  farmer,  undoubtedly  has 
proved  the  cloak  for  more  evasion  of  taxes  than  any  other 
provision  of  our  laws.  In  the  cities  millions  of  dollars  of 
property,  unquestionably,  are  withheld  from  taxation  under 
the  guise  of  this  exemption.  The  assessor  in  the  rural  dis- 
tricts generally  comes  face  to  face  with  the  owner  of  the 
classes  of  personal  property  which  are  found  about  a  farm, 

19 


COMMITTEE  ON  TAXATION. 

and  most  of  these  are  listed  and  the  exemptions  taken.  In 
the  cities  property  owners  rarely  fill  out  their  schedules 
of  property,  and  the  assessor  is  too  busy  to  see  the  individual 
taxpayers;  so  that  all  personal  property,  in  the  form  of 
household  and  kitchen  furniture,  vehicles,  automobiles,  jew- 
elry, etc.,  largely  escapes  taxes.  There  are  said  to  be  20,000 
automobiles  in  the  State  of  Tennessee,  and  our  information 
is  that  not  more  than  one  per  cent  are  returned  for  tax- 
ation. Also  the  assessor  in  the  rural  districts  more  often 
discovers  the  holders  of  notes,  mortgages,  etc.  But  in 
the  cities  the  assessment  of  property  of  this  class  is  more 
generally  ignored.  The  fact  is,  as  stated,  that  where  the 
rate  is  from  3  to  5  per  cent,  the  holder  who  lives  in  a  city 
with  a  high  tax  rate  cannot  give  it  in  without  practical  con- 
fiscation. If  Tennessee  frames  another  Constitution,  a  dis- 
crimination should  be  made  between  that  property  now  ex- 
empted under  the  Constitution  which  is  used  directly  or 
indirectly  in  the  agriculture  or  industries  of  the  State,  while 
removing  such  exemption  from  articles  of  luxury  not  so 
used.  Of  course,  as  to  notes  and  securities,  an  entirely  dif- 
ferent system  ought  to  be  devised. 

How  MERCHANTS  FARE. 

As  has  been  said  above,  the  manufacturer  and  farmer  en- 
joy, under  the  present  Constitution  and  tax  laws,  .exemp- 
tions of  great  value.  When  we  take  the  case  of  the  mer- 
chant, however,  we  find  that  he  must  not  only  pay  an  ad 
valorem  tax  on  his  property  as  do  other  property  owners, 
and  at  the  same  rate,  but  he  is  also  compelled  to  pay  a  privi- 
lege tax  to  be  permitted  to  do  business  in  Tennessee.  The 
great  seal  of  our  State  presents  figures  of  Agriculture  and 
of  Commerce,  its  handmaiden ;  but  the  man  who  comes  into 
the  State  to  invest  his  money  and  enter  into  any  class  of 
business  finds  tollgates  erected  along  almost  every  avenue 
of  commerce.  ^According  to  the  Bureau  of  the  Census  of 
the  United  States  Government,  Tennessee  collects  more  in 
privilege  and  ad  valorem  taxes  from  merchants  and  busi- 
nesses than  any  other  State  in  the  South,  except  Virginia. 

20 


COMMITTEE  ON  TAXATION. 

The  system  of  privilege  taxes  is  grafted  into  our  laws  and 
customs,  and  probably  will  not  soon  be  changed.  Some 
economist  has  said  that  "  the  best  system  of  taxation  is  that 
which  picks  the  most  feathers  from  the  goose  with  the  least 
squawking."  The  merchants  have  not  complained  much, 
and  the  exigencies  of  our  treasury  make  their  relief  re- 
mote; but  we  do  suggest  that  when  we  write  a  new  system 
of  taxes  into  our  organic  law,  we  study  the  experience  of 
progressive  States  and  limit  license  taxes  to  those  businesses 
or  occupations  x  which  it  is  desired  to  prohibit  or  restrict.  ^ 
The  merchant  is  taxed  also  on  his  stock  of  goods.  The 
framers  of  the  Constitution  did  not  intend  that  he  should 
be  taxed  at  the  same  rate  as  the  holders  of  other  property. 
This  is  shown  by  the  fact  that  the  Legislature  is  given 
power  to  tax  merchants  as  it  may  see  fit.  It  has  always, 
however,  taxed  their  property,  so  far  as  the  rate  is  con- 
cerned, as  other  property.  Unquestionably,  there  is  a  large 
element  of  injustice  in  this;  for  when  we  consider  the  fact 
that  the  merchant  merely  holds  the  property  in  transit  be- 
tween the  producer  and  consumer  and  makes  a  small  profit 
as  a  middleman,  his  ownership  of  the  property  is  very  dif- 
ferent in  principle  from  the  ownership  of  real  estate  or  other 
fixed  property.  Such  property  as  he  holds  is  subject  to 
large  depreciation;  his  business  is  hazardous,  due  to  cred- 
its, competition,  changing  seasons,  changing  styles,  etc.  It 
is  essentially  unfair,  and,  despite  the  holdings  of  the  courts, 
economically  unsound,  to  consider  his  property  in  a  class 
with  all  other  property  in  the  State.  The  merchant  is  re- 
quired to  file  an  affidavit  with  the  County  Court  Clerk,  giving 
the  highest  and  lowest  amount  of  his  stock  of  goods  on  hand 
during  the  year.  These  two  sums  are  added  together  and 
divided  by  two,  and  this  arbitrarily  fixed  amount  is  taken 
as  representing  his  average  stock  during  the  year,  and  the 
tax  is  collected  on  this  at  the  same  rate  as  on  other  property. 
The  County  Court  Clerk  is  not  compelled  to  take  the  mer- 
chant's statement,  but  in  practice  he  usually  does.  How- 
ever, these  statements  are  notorious  undervaluations;  and  ^ 
in  some  counties  the  revenue  agent  has  an  office  with  the 
County  Court  Clerk,  and  when  the  latter  has  completed  the 

21 


COMMITTEE  ON  TAXATION. 

assessment  of  merchants,  he  is  ready  to  back  assess  them. 
Even  after  this  process,  the  valuation  on  the  stock  is  not  the 
true  value ;  for  very  few  merchants  could  do  business  in  the 
State  and  make  any  profit  if  they  were  assessed  on  the  true 
value  of  their  stocks  of  goods.  After  the  recent  failure 
of  one  of  the  largest  mercantile  establishments  in  the  State, 
the  assessment  was  found  to  be  one-tenth  of  the  inventory. 
In  fact,  as  the  present  system  is  operated,  the  larger  the 
store,  as  a  rule,  the  smaller  the  proportion  of  assessment. 
This  inequitable  arrangement  causes  much  complaint  from 
the  smaller  merchants.  Indeed,  under  the  present  system 
they  are  paying  a  large  part  of  the  taxes  due  from  their 
more  successful  competitors.  The  merchants  of  the  State 
are  just  as  honest  as  other  taxpayers,  and  are  as  anxious, 
we  believe,  for  the  enactment  of  tax  laws  which  may  be 
strictly  enforced  without  injury  to  any  business  interest. 
It  is  our  opinion  that  the  taxes  of  merchants  should  be  equal- 
ized in  some  manner  like  those  of  other  property  owners. 
A.  merchant  ought  to  be  visited  by  whatever  official  is  given 
the  duty  of  assessing  his  property;  and  when  this  assess- 
ment is  made,  it  should  be  reported  by  the  County  Court 
Clerk  to  the  State  Tax  Commission,  and  should  be  equalized 
there,  as  are  the  assessments  of  all  other  classes  of  prop- 
erty. 

STRETCHING  OF  EXEMPTIONS. 

A  great  deal  has  been  said  by  those  who  appeared  before 
this  Committee  as  to  the  abuse  of  the  exemptions  of  educa- 
tional, religious,  scientific,  charitable,  and  other  institutions 
contained  in  the  present  law.  This  subject  is  one  of  much 
importance,  and  ought  to  be  given  careful  consideration  by 
the  General  Assembly.  We  do  not  think  any  marked  change 
in  the  policy  of  the  State  in  the  fostering  of  such  institu- 
tions by  exemptions  would  be  approved  by  the  people.  At 
the  same  time,  it  has  been  developed  in  the  hearings  before 
this  Committee  that  the  law  probably  goes  further  in  the 
way  of  exemptions  of  all  kinds  than  was  the  intention  of 
the  framers,  and  certainly  much  further  than  the  makers 
of  the  Constitution  intended.  We  are  strongly  of  the  opin- 

22 


COMMITTEE  ON  TAXATION. 

ion  that,  as  regards  educational  institutions,  a  difference 
should  be  made  between  those  organized  under  public-wel- 
fare charters  and  those  that  are  organized  and  operated  for 
profit.  We  believe  also  that  whenever  an  exemption  is  al- 
lowed on  an  educational  or  charitable  institution,  such  insti- 
tution ought  to  be  required  to  make  reports  to  the  State  and 
be  placed  to  some  extent  under  its  jurisdiction. 

TAX  MAPS  FOR  COUNTIES. 

The  need  of  tax  maps  for  every  county  has  been  forcibly 
brought  to  the  attention  of  the  Committee.  Outside  of  the 
larger  cities,  maps  are  not  now  used  by  the  assessors.  The 
result  is  that  inaccurate  descriptions  of  property  have  been 
reported  from  almost  all  counties.  It  has  been  the  custom  of 
tax  dodgers  to  turn  in  acreage  property  at  less  than  the  real 
acreage.  Frequently  assessors  make  no  effort  to  ascertain  the 
acreage,  and  give  only  a  general  description  of  the  property. 
It  is  estimated  that  a  large  acreage  in  the  State  escapes  as- 
sessment and  taxes  altogether.  Some  city  property  also  es- 
capes. Without  the  use  of  accurate  maps  in  assessing  all 
the  counties,  property  will  continue  to  escape  taxation.  We 
believe  that  the  State  Geological  Department,  with  the  aid 
of  county  surveyors  and  engineering  students  at  the  Univer- 
sity of  Tennessee,  could  at  small  expense  check  up  photo- 
graphic enlargements  of  the  maps  already  made  by  the 
United  States  Geological  Survey  for  a  number  of  counties, 
and  thus  prepare  maps  on  which  every  plot  of  ground  could 
be  shown.  Even  without  an  existing  map  for  a  base,  we 
are  informed  that  accurate  maps  can  be  very  inexpensively 
made.  These  maps  should  also  contain  representations  of 
coal  and  mineral  measures,  timber,  water  power,  etc.  From 
the  State  or  United  States  Agricultural  Departments  should 
be  obtained  soil  surveys  to  accompany  such  maps  or  be  a 
part  of  them.  The  possession  of  such  maps  would  be  of 
enormous  value  in  the  proper  assessment  and  equalization 
of  all  property  in  the  State  and  would  not  necessarily  be 
very  costly.  They  will,  we  believe,  in  a  few  years,  pay  for 
the  expense  of  their  making  many  fold  through  a  better 
equalization  of  property. 

23 


COMMITTEE  ON  TAXATION. 

CURSE  OF  TITLE  LITIGATION. 

An  accurate  survey  of  the  State  will  also  aid  very  much 
in  arriving  at  some  proper  solution  as  to  the  problem  of  land 
titles.  In  many  of  the  counties  of  Tennessee,  especially 
those  containing  parts  of  the  Walden's  Ridge  and  Cumber- 
land Plateaus,  development  has  been  almost  paralyzed  be- 
cause of  title  litigation.  Properties  through  all  this  region 
are  depressed  in  value  because  the  purchaser,  who  supposes 
he  has  bought  land,  finds  that  he  has  bought  only  a  claim  to 
land.  Often  the  original  grants  or  patents  overlap  three 
to  six  deep.  Court  dockets  are  crowded  with  these  intricate 
and  vexing  land-title  cases.  Costs  and  lawyers'  fees  consume 
the  substance  of  those  so  venturesome  as  to  invest  in  this 
class  of  property.  Worse  than  this,  those  in  actual  posses- 
sion of  such  wild  lands  are  contemptuous  of  courts,  where 
justice  is  long  delayed,  and  often  recognize  no  law  except 
that  of  force,  and  many  a  mountain  murder  has  been  com- 
mitted over  a  title  or  line.  Tennessee's  good  name  is  in 
disrepute  all  over  the  Union  because  many  of  its  solemn 
grants  issued  many  years  ago  are  found  to  be  worthless. 
It  is  useless  to  discuss  the  origin  of  these  conditions.  They 
exist,  however,  and  nothing  has  been  done  to  remedy  them. 
Once  the  title  claims  in  mineral  and  timber  regions  are  set- 
tled, we  believe,  there  will  be  immense  development  of  our 
coal,  iron-ore,  and  hardwood  resources.  Proper  maps  of 
this  region  would  assist  in  the  adjudication  of  titles.  But 
we  are  also  recommending  other  legislation  on  the  subject, 
in  the  hope  that  all  title  claimants  may  be  compelled  to  come 
into  court  within  a  time  limit  and  have  their  differences  ad- 
justed, after  which  time  no  redress  shall  be  given,  and  that 
no  claimant  who  has  not  paid  his  taxes  shall  be  able  to  sus- 
tain his  claim.  In  connection  with  this,  we  are  also  recom- 
mending legislation  so  that  titles  made  at  tax  sales  may  be 
valid. 

UNIFORM  BOOKKEEPING. 

Our  investigations  lead  us  to  believe  that  there  is  no  uni- 
form system  of  bookkeeping  in  the  county  offices  of  Ten- 
nessee. We  think  such  a  system  ought  to  be  instituted  by 

24 


COMMITTEE  ON  TAXATION. 

the  Comptroller,  as  authorized  by  law.  The  forms  in  which 
all  our  reports  are  issued  are  out  of  date,  and,  if  information 
is  desired,  may  be  dug  out  only  by  painstaking  labor.  The 
State  ought  to  devise  and  print  all  the  forms  and  books  used 
in  all  the  offices  throughout  the  State.  Traveling  auditors 
or  collectors  under  the  Comptroller,  one  for  each  grand  di- 
vision of  the  State,  are  also  necessary  to  check  up  the  county 
offices  and  make  collections  for  the  Comptroller.  Weekly 
settlements  from  the  larger  counties  should  be  insisted  on, 
and  monthly  settlements  in  all  others.  Frequent  audits  and 
prompt  settlements  will  prevent  the  shortages,  technical  and 
otherwise,  which  are  found  too  often  to  exist. 

TENNESSEE  TAX  COMMISSION. 

We  strongly  urge  that  the  Tennessee  Tax  Commission 
shall  be  appointed  by  the  Governor.  He  is 'elected  by  the 
people,  and  is  their  leader,  as  well  as  of  his  party.  His  ad- 
ministration stands  or  falls  in  accordance  not  only  with  his 
own  acts,  but  with  the  acts  of  his  subordinates.  Before 
election  he  is  required  to  make  certain  specific  promises,  as 
does  his  party.  He  is  expected  to  keep  these,  and  he  needs 
instrumentalities  in  his  hands  to  make  performances  possible. 

The  full  text  of  the  tax  bill  providing  for  a  commission 
is  given  in  the  Appendix  to  this  report,  and  we  refer  to  it 
here  briefly.  We  recommend  that  the  Tax  Commission  con- 
sist of  one  member  from  each  grand  division  of  the  State, 
the  first  members  to  serve  two,  four,  and  six  years,  re- 
spectively, and  the  subsequent  appointees  to  serve  six  years 
from  the  time  of  their  appointment.  We  recommend  that 
the  appointee  for  the  long  term  be  the  first  chairman.  In 
order  that  men  of  force  and  ability  may  be  secured  for  such 
positions,  we  strongly  urge  that  good  salaries  be  paid.  We 
recommend  that  these  be  at  least  $4,500  for  the  chairman 
and  $4,000  each  for  the  associate  members  annually,  and, 
indeed,  would  suggest  that  the  Legislature  consider  seri- 
ously whether  or  not  even  larger  sums  ought  to  be  paid. 
However,  in  view  of  the  high  dignity  of  the  office  and  the 
extremely  important  duties  attaching  to  it,  we  feel  sure  that 

25 


COMMITTEE  ON  TAXATION. 

men  with  requisite  qualifications  can  be  secured  at  these  fig- 
ures. In  Ohio  and  Wisconsin  they  are  paid  $5,000  each  and 
in  Minnesota  $4,500  each. 

We  recommend  that  this  Tax  Commission  have  under  its 
supervision  the  assessment  and  equalization  of  all  property  in 
the  State.  We  do  not  recommend  that  the  office  of  as- 
sessor be  abolished,  as  we  feel  sure  that  excellent  results  may 
be  obtained  through  the  present  assessors.  We  do  recom- 
mend, however,  that  the  assessors  shall  be  placed  under  the 
complete  supervision  of  the  Tax  Commission,  which  shall 
be  given  power  to  remove  them  for  cause  and  appoint  their 
successors  until  the  first  of  January  following  the  next 
regular  county  election.  Under  the  system  we  are  recom- 
mending it  will  be  the  duty  of  the  members  of  the  Tax 
Commission  to  travel  over  the  State  and  thoroughly  ac- 
quaint themselves  with  values.  They  will  be  required  to 
appoint  the  boards  of  equalization  for  each  county,  from 
lists  of  names  furnished  by  county  chairmen  and  mayor? 
of  cities,  which  will  pass  on  complaints  from  taxpayers.  We 
are  recommending  that  they  be  given  power  to  reassess  the 
entire  property  of  a  county  by  raising  or  lowering  the  same 
horizontally.  The  system  of  assessment  and  equalization 
which  we  recommend,  briefly  stated,  contains,  among  other 
important  features,  those  set  forth  in  the  following  para- 
graphs : 

How  ASSESSMENTS  ARE  MADE. 

Property  is  to  be  assessed  by  the  present  assessors  as  oi 
January  10.  The  assessor  and  his  deputies  are  to  have  from 
that  date  until  September  1  in  which  to  make  assessments. 
Ten  days  prior  to  that  date  his  office  is  to  be  open  at  the 
courthouse  and  all  property  owners  invited  to  inspect  his 
books.  On  the  first  Monday  in  September  the  Board  of 
Equalization,  of  three  freeholders,  appointed  by  the  Tax 
Commission,  is  to  meet  and  examine  his  work.  They  shall 
pass  on  complaints,  and  shall  also  have  the  right  to  reassess 
any  piece  of  property  in  the  county,  giving  such  taxpayers 
notice  to  appear  and  show  cause  why  such  should  not  be 
done.  By  October  1  the  tax  aggregate  of  the  county  shall 
be  in  the  hands  of  the  Tax  Commission,  and  the  month  of 

26 


COMMITTEE  ON  TAXATION. 

October,  or  longer  if  necessary,  shall  be  given  up  to  an  ex- 
amination by  the  Tax  Commission  of  the  assessment  of  the 
State,  the  hearings  of  complaint,  etc.  The  decision  of  the 
Tax  Commission  on  assessments  shall  be  final.  The  Com- 
mission shall  look  into  the  assessments  of  all  counties  and 
seek  to  equalize  them.  They  shall  have  power  to  summon 
taxpayers  before  them  to  show  cause  why  assessments 
shall  not  be  raised.  On  completion  of  assessments  of  each 
county,  the  assessor  shall  copy  the  books  and  turn  same  over 
into  the  hands  of  the  County  Trustee  by  December  1. 
Taxes  shall  be  due  December  1  and  delinquent  March  1. 
The  present  system  of  collecting  delinquent  taxes  shall  be 
followed,  except  with  such  changes  as  will  make  good  the 
title  of  property  bought  at  tax  sales. 

REPORTS  REQUIRED. 

From  January  10  to  September  1  each  assessor  shall  be 
required  to  make  a  bi-weekly  report  to  the  office  of  the 
Tax  Commission  at  Nashville  of  all  the  work  done  by  him 
and  deputies  the  previous  weeks.  Blanks  shall  be  furnished 
him  for  that  purpose.  He  shall  state  on  such  reports  what 
pieces  of  property  he  has  visited,  what  taxpayers  he  has  as- 
sessed, what  was  their  previous  assessments,  and  what  as- 
sessments he  placed  oji  their  property.  The  Tax  Commis- 
sion shall  carefully  examine  such  reports  and  give  assessors 
instructions  as  to  their  duties.  They  shall,  so  far  as  possi- 
ble, visit  the  counties  of  the  grand  divisions  from  which  they 
were  appointed  and  personally  instruct  the  assessors  in  their 
work.  They  shall  require  that  each  assessor  see  each  tax- 
payer personally  and  fill  out  his  schedule  of  real  and  per- 
sonal property  in  accordance  with  the  law.  The  Tax  Com- 
mission shall  have  power  to  remove  assessors  for  cause  and 
appoint  their  successors  to  fill  out  their  unexpired  terms. 
No  assessor  shall  receive  pay  in  full  for  his  work  ex- 
cept upon  certification  by  the  Tax  Commission  that  he  has 
performed  the  duties,  of  his  office  in  accordance  with  the 
law.  The  Tax  Commission  shall  maintain  an  office  at  the 
Capitol  at  Nashville,  and  shall  have  power  to  employ  such 
clerical  help  as  is  necessary.  Two  of  the  members  shall 

27 


COMMITTEE  ON  TAXATION. 

constitute  a  quorum.  The  Commission  shall  elect  a  secre- 
tary at  a  salary  of  $1,500  per  year,  who  shall  keep  minutes 
of  all  proceedings  and  perform  such  other  duties  as  are 
delegated  to  him.  Each  member  of  the  Commission  shall  be 
required  to  visit  at  least  once  a  year  each  of  the  counties  of 
his  grand  division.  At  any  time  a  majority  of  the  Commis- 
sioners sees  fit,  the  Commissioners  shall  interchange  grand 
divisions  for  the  inspection  of  the  counties.  The  Commis- 
sion shall  report  at  each  biennial  session  of  the  Legislature, 
with  such  facts  pertaining  to  a  study  of  taxation  in  this  and 
other  States  as  it  may  deem  advisable. 

RECORDS  OF  PROBATES. 

We  recommend  that  every  County  Court  Clerk  in  the 
State  be  required  to  furnish  the  assessor  a  certified  list 
of  the  deeds  filed  for  probate,  giving  the  description  of 
the  property  and  the  consideration;  and  the  assessor  shall 
prepare  a  duplicate  copy  of  such  transfers,  with  a  memoran- 
dum of  the  assessment  of  the  same  property  for  taxes,  which 
shall  be  filed  with  the  Tax  Commission. 

We  recommend  also  that  the  County  Court  Clerk  be  re- 
quired to  furnish  the  assessor  with  records  of  mortgages  reg- 
istered. 

We  recommend  that  it  no  longer  be  required  that  dupli- 
cate tax  books  be  made,  except  in  counties  where  there  are 
no  fireproof  vaults  in  the  courthouses. 

INCOME  TAX  ON  BONDS. 

No  State,  so  far  as  we  have  learned,  has  succeeded  in  se- 
curing any  considerable  portion  of  its  revenue  from  the  tax- 
ation of  mortgage  and  lien  notes,  bonds,  and  other  securi- 
ties, when  taxed  as  other  property.  Tennessee  in  theory 
taxes  all  these  exactly  as  it  does  other  property.  In 
this  way  often  two  or  three  values  are  created  out  of  one. 
Such  a  law,  strictly  enforced,  would  be  ruinous  to  the  State. 
In  Connecticut,  New  York,  New  Jersey,  Minnesota,  and  other 
States  where  the  Constitution  does  not  prohibit,  large  reve- 
nues are  now  derived  by  levying  a  registration  tax  at  a  low 

28 


COMMITTEE  ox  TAXATION. 

rate  on  the  above  class  of  property.  New  York  for  years 
sought  to  have  such  property  assessed;  but  in  that  State, 
which  probably  of  all  others  is  most  wealthy  in  such  per- 
sonal property,  the  percentage  borne  by  that  property  from 
year  to  year  decreased.  Now,  however,  the  Empire  State 
places  a  tax  of  one-half  of  one  per  cent  on  mortgages,  lien 
notes,  bonds,  etc.,  in  lieu  of  other  taxes,  and  the  result  has 
proven  very  satisfactory  from  a  revenue  standpoint.  This 
Committee  has  been  very  much  perplexed  how  to  reach  this 
class  of  property,  which  undoubtedly  should  be  taxed,  but 
not  at  a  confiscatory  rate.  We  believe  we  have  found  a  so- 
lution in  recommending  that  taxes  be  levied  on  property 
designated  as  bonds,  as  permitted  by  the  Constitution,  which 
says  that  the  State  may  "  levy  a  tax  upon  incomes  derived 
from  stocks  and  bonds  that  are  not  taxed  ad  valorem."*  We 
are  advised  that  we  may  also  declare  securities  such  as  lien 
notes  and  mortgages  bonds  in  the  meaning  of  the  Constitution. 
We,  therefore,  recommend  that  these  pay  a  tax  of  10  per  cent 
on  their  income  as  a  method  of  arriving  at  their  value ;  and 
we  also  recommend  that  a  registration  tax  of  one-tenth  of 
one  per  cent  be  imposed  on  such  instruments,  based  on  the 
amount  secured.  We  feel  confident  that  these  provisions 
will  not  drive  any  foreign  capital  out  of  the  State.  And, 
furthermore,  we  believe  they  will  have  the  effect  of  encour- 
aging the  keeping  of  our  OWTL  capital  at  home  and  induce 
the  purchase  of  such  securities.  They  will  assist  the  tax- 
payer in  making  an  honest  personal  schedule,  and  he  will 
be  disposed  to  increase  his  holdings  of  this  class  of  prop- 
erty in  view  of  the  method  of  taxation.  Money  will  be  easier, 
and  our  taxpayers  will  be  freed  of  the  charge  of  wilful  eva- 
sion of  the  law.  We  believe  that  if  this  provision  is  enacted 
into  law  it  will  enable  the  State  of  Tennessee  to  sell  its  own 
bonds  to  its  own  citizens.  And  the  same  is  true  as  to  munici- 
pal and  county  bonds. 

The  Wisconsin  Tax  Commission  of  1912  reports :  "A  year's 
experience  with  the  income  tax  serves  to  establish  the  re- 
freshing fact  that  the  average  taxpayer  is  honest  and  will 
tell  the  truth,  provided  assessors  will  take  the  trouble  to  ask 

*Art.  II.,  Sec.  28. 

20 


COMMITTEE  ON  TAXATION. 

him  questions  and  provided  the  rate  of  taxation  is  reason- 
able." We  need  a  face-to-face  assessment  in  Tennessee ;  and 
-with  provision  for  an  income  tax  on  bonds  at  a  low  rate,  the 
holders  of  personal  property  will  not  run  from  the  assessors. 


OTHER  FORMS  OF  TAXES. 

We  do  not  in  this  report  discuss,  except  incidentally,  taxes 
on  railroads  and  public-service  corporations  which  are  now- 
assessed  by  the  Railroad  Commission,  nor  privilege  taxes 
levied  on  insurance  premiums,  and  telephone  and  telegraph 
and  building  and  loan  companies,  nor  the  collateral  and  di- 
rect inheritance  taxes,  taxes  on  transfers  of  realty,  nor  poll 
taxes.  There  was  some  doubt  as  to  whether  the  language 
of  the  resolution  under  which  this  Committee  was  appointed 
permitted  our  investigation  of  these  subjects;  and,  in  addi- 
tion, we  have  been  so  busy  on  what  is  generally  known  as 
the  Assessment  Act  that  we  have  had  little  time  to  take  up 
the  other  matters.  We  may  say,  however,  that  it  was  called 
to  our  attention  that  the  sleeping-car  companies  pay  the 
State  only  a  small  privilege  tax.  We  see  no  reason  why  such 
companies  should  not  be  assessed  like  other  private  car  com- 
panies, and  that  all  the  provisions  of  such  Acts  shall  be  en- 
forced, and  we  are  so  recommending.  The  insurance  com- 
panies pay  into  the  State  nearly  as  large  a  sum  as  the  rail- 
roads. The  tax  of  21/2  per  cent  on  their  gross  premiums,  in 
view  of  the  manner  in  which  they  fix  rates,  is  easily  shifted, 
and  apparently  there  is  little  complaint.  The  inheritance  tax 
laws  also  bring  a  considerable  revenue  into  the  State  treas- 
ury, and  are  correct  in  principle  and  not  burdensome  in  op- 
eration. The  tax  on  realty  transfers  yields  nearly  as  much 
revenue  as  merchants'  taxes. 

All  the  aforementioned  subjects  are  of  grave  importance, 
and  should  be  studied  with  care  by  the  Tax  Commission,  con- 
sidering the  experience  of  this  and  other  States,  especially 
States  like  Wisconsin,  Minnesota,  Michigan,  and  others 
which  have  revised  their  methods  of  taxing  railroads  and 
public-service  corporations  in  recent  years. 

30 


COMMITTEE  ox  TAXATION. 

SUMMARY  OF  RECOMMENDATIONS. 

Summarized  briefly,  in  conclusion,  our  recommendations 
are  as  follows : 

That  a  permanent  Tax  Commission  of  three  members,  one 
from  each  grand  division  of  the  State,  be  appointed  by  the 
Governor,  to  have  supervision  of  the  assessments  and  equal- 
ization of  all  property  in  the  State. 

That  the  assessors  do  their  work  under  the  supervision 
of  this  Tax  Commission,  which  shall  have  the  power  to  re- 
move assessors  for  cause  and  appoint  their  successors  until 
the  first  day  of  January  following  the  next  regular  county 
election. 

That  merchants'  taxes  shall  be  assessed  by  the  County 
Court  Clerks,  but  shall  be  reported  to  and  equalized  by  the 
Tax  Commission. 

That  property  now  assessed  by  the  Railroad  Commission 
shall  continue  to  be  so  assessed,  but  that  the  Tax  Commis- 
sion shall  perform  the  duties  of  the  Board  of  Equalization 
for  such  property. 

That  the  Tax  Commission  shall  perform  the  duties  of  the 
Board  of  Equalization  for  all  other  property. 

That  holders  of  mortgage  notes,  lien  notes,  bonds,  and  all 
such  securities,  public  or  private,  shall  pay  a  State  tax  on 
their  incomes  from  such  property.  Also,  that  a  small  regis- 
tration tax  on  such  instruments  shall  be  imposed. 

That  there  shall  be  a  survey  of  the  State,  and  taxes  as- 
sessed with  the  aid  of  county  maps. 

That  a  limit  of  time  shall  be  given  for  the  adjudication  of 
every  title  now  disputed  in  the  courts,  and  payment  of  taxes 
shall  be  requisite  to  establishment  of  claim. 

That  after  two  years  the  holder  of  property  under  a  tax 
title  shall  not  be  disturbed. 

That  after  a  receipt  for  taxes  has  been  issued  there  shall 
be  no  reassessment  of  the  property  for  that  year  or  previous. 

That  until  in  the  judgment  of  the  Tax  Commission  it  is 
not  longer  necessary,  there  shall  be  annual  assessments  of 
both  real  and  personal  property  for  reasons  shown  in  this 
report. 

That  no  assessor  shall  be  fully  paid  for  his  work  of  as- 

31 


COMMITTEE  ox  TAXATION. 

sessment  until  a  certificate  is  issued  by  the  Tax  Commis- 
sion that  he  has  complied  with  the  law. 

That  under  the  Comptroller  a  system  of  checking  up  and 
collecting  from  delinquent  officials  be  devised,  and  for  the 
installation  of  uniform  systems  of  bookkeeping. 


LIMITATION  OF  RATES. 

The  above  constitute  our  main  recommendations  for  the 
assessment  and  collection  of  revenues.  We  wish  to  say,  in 
conclusion,  however,  that  we  believe  public  policy  requires 
that  there  be  a  limitation  of  the  tax  rate.  The  taxpayer 
would  not  object  to  higher  assessments  if  he  did  not  fear  that 
the  same  tax  rate  as  at  present  was  going  to  be  maintained. 
His  experience  has  been  that  when  assessments  were  in- 
creased the  rate  was  not  reduced.  He  does  not  trust  the 
State  Legislature,  the  County  Court,  or  his  municipal  gov- 
ernment to  make  a  reduction  of  the  rate  under  a  higher  as- 
sessment. Such  a  large  tax  aggregate  proves  a  temptation  to 
the  tax  spender.  This  is  but  human  nature.  In  our  opinion, 
it  is  clearly  within  the  power  of  the  Legislature  to  limit  the 
total  tax  rate  for  all  purposes.  There  is  now  a  limitation 
put  on  the  tax  rate  of  counties  for  county  purposes.  County 
Courts,  however,  levy  taxes  for  so  many  special  purposes 
that  the  legislative  limitation  is  ineffective,  so  far  as  pro- 
tecting the  taxpayer  is  concerned.  There  is  no  legal  or  other 
reason,  however,  why  the  Legislature  should  not  protect  the 
taxpayers  of  the  State  by  limiting  the  total  rate,  not  only 
for  county  purposes,  but  also  for  municipal  purposes.  The 
municipal  charters,  as  a  rule,  do  not  limit  the  rates.  We 
feel  sure  that  the  people  of  the  State  would  withdraw  every 
vestige  of  opposition  to  cash-value  assessments  and  the 
equalization  of  taxes  if  the  Legislature  in  providing  for  the 
operation  of  such  a  system  at  the  same  time  gave  some  pro- 
tection from  raids  on  the  State,  county,  and  municipal  treas- 
uries. Also,  there  are  many  obvious  advantages  to  the  prop- 
erty owner  in  higher  assessments  and  lower  rates. 

We  cannot  at  this  time  make  any  very  accurate  estimate 
on  the  total  assessment  of  1915  taxes,  nor  the  needs  of  the 

32 


COMMITTEE  ox  TAXATION. 

State  for  the  year.  So  if  any  change  is  made  in  the  rate,  it 
ought  to  be  conditioned  on  the  total  assessment.  In  the 
State  of  Missouri  a  system  of  this  kind  is  followed.  When 
the  total  tax  assessment  reaches  a  certain  number  of  hun- 
dred millions  of  dollars,  the  rate  automatically  becomes  fixed 
at  a  certain  figure.  We  now  have  an  assessment,  including 
merchants'  taxes,  of  approximately  seven  hundred  million 
dollars.  The  Legislature  should  fix  rates  of  State  taxes  to 
apply  when  the  total  assessment  reaches  eight  hundred  mil- 
lion, nine  hundred  million,  one  billion  dollars,  etc.,  and  thus 
provide  against  any  considerable  cost  of  the  State  govern- 
ment. 

As  to  limiting  the  tax  rate  for  counties  and  municipalities, 
this  is  an  even  more  difficult  problem.  Nevertheless,  it  is 
extremely  important,  and  a  solution  should  be  found.  We 
believe  that  Ohio  in  its  tax  laws  points  the  proper  course. 
It  was  provided  in  that  State  that  the  total  amount  of  taxes 
to  be  levied  in  counties  and  municipalities  shall  not  be 
more  than  a  fixed  per  cent  larger  for  the  ensuing  year  than 
for  the  year  in  which  the  law  went  into  effect.  By  applying 
this  rule  to  counties  and  cities  in  Tennessee,  and  by  placing 
the  maximum  increase  permitted  in  any  county  and  city  to 
6  per  cent  in  any  one  year,  the  county  and  municipal  authori- 
ties will  be  compelled  to  take  the  1915  and  1916  tax  aggre- 
gates and  levy  tax  rates  in  each  case  which  will  not  increase 
the  total  taxes  levied  and  collected  by  such  governments  by 
more  than  6  per  cent.  We  believe  this  method  is  practical, 
and  we  strongly  recommend  that  it  be  adopted.  Indeed, 
limitation  of  the  rates  in  counties  and  cities  is  more  impor- 
tant than  the  State  rate.  Figures  about  to  be  published  by 
the  government  show  the  total  receipts  of  cities  over  2,500 
population  in  the  State  in  1913  as  $12,714,846,  and  of  the 
counties  of  the  State  $13,371,493.  It  will  be  seen  that  in 
both  cases  they  exceed  by  about  threefold  the  State  receipts. 

EQUALIZATION  THE  PURPOSE. 

It  will  not,  we  feel  sure,  be  the  purpose  of  the  Legislature 
to  increase  the  burden  of  taxation,  but  rather  to  equalize  it. 

33 
3 


COMMITTEE  ON  TAXATION. 

But  it  is  a  fundamental  axiom  of  taxation  that  a  commu- 
nity or  Commonwealth  may  collect  a  much  larger  fund  for 
governmental  purposes  without  unduly  burdening  the  indi- 
vidual citizens,  provided  the  taxes  are  apportioned  equitably 
on  all  who  are  able  to  pay  a  portion  of  the  cost  of  govern- 
ment. Ability  to  pay  is  the  only  true  guide  as  to  justice  in 
taxation.  Patriotism  dictates  submission  to  the  tax  bur- 
den. Every  citizen  should  welcome  the  opportunity  to  con- 
tribute his  little  or  his  much  in  support  of  his  government, 
in  the  knowledge  that  a  government  liberally  supported  con- 
fers manifold  benefits  on  its  citizens. 

Tennessee  is  now  one  of  the  most  cheaply  governed  States 
in  the  Union.  Only  four  other  States,  all  Southern,  impose 
a  lighter  burden  on  their  taxpayers,  as  shown  by  per  capita 
receipts  and  expenditures.  These  in  Tennessee  now  average 
only  about  two  dollars  per  capita  annually,  which  is  about 
one-half  the  average  for  the  United  States  and  considerably 
less  than  the  average  in  Southern  States.  All  the  States 
bordering  Tennessee,  except  North  Carolina  and  Mississippi, 
expend  larger  sums  per  capita.  Nevertheless,  within  ten 
years  our  receipts  increased  approximately  from  $2,600,000 
to  $4,600,000,  the  increase  being  constant  from  year  to  year, 
showing  the  prosperity  of  the  State,  and  our  expenses  have 
increased  in  proportion.  When  we  consider  that  in  1904  the 
State  paid  out  for  charities,  schools,  and  pensions  the  sum  of 
$989,609.44,  and  in  1914  paid  out  $3,075,142.45  for  the  same 
purposes,  we  see  how  the  heart  of  our  State  has  throbbed 
in  unison  with  the  great  movements  affecting  the  nation. 
Nor  are  we  going  to  escape  our  obligations  to  do  more  for 
our  heroes  of  the  past,  for  our  youth,  the  hope  of  the  future, 
and  for  the  unfortunates  to  whom  we  also  wish  again  to 
open  the  door  of  opportunity.  And,  also,  we  are  under  ob- 
ligation to  do  much  more  than  we  have  done  for  good  roads 
and  in  aid  of  agriculture,  mining,  forestry,  and  for  other 
good  purposes. 

These  demands  on  the  State  emphasize  strongly  the  need 
of  the  equalization  of  our  taxes  and  the  apportionment  of  the 
burden  to  all  the  citizens  in  proportion  to  ability. 

This  Committee  has  labored  earnestly  to  suggest  some 

34 


COMMITTEE  CLN  TAXATION. 

solution  for  the  problem,  and  we  have  had  much  valued  and 
sympathetic  aid  from  many  officials  and  the  people  gener- 
ally. We  trust  we  have  succeeded  measurably  in  our  diffi- 
cult task,  and  we  now  ask  careful  consideration  to  the  re- 
port we  submit,  and  to  the  proposed  statutes  we  have  drafted 
in  accordance  therewith. 

Respectfully  submitted, 

0.  K.  HOLLADAY,  Chairman. 

A.  R.  GHOLSON. 

J.  W.  VANDEN. 

LEO  GOODMAN. 

THAD.  A.  Cox. 
^GEORGE  F.  MILTON. 

WALLACE  McCLURE,  Secretary. 
Nashville,  Tenn.,  March  8,  1915. 


35 


COMMITTEE  ON  TAXATION. 


APPENDIX. 


SENATE  JOINT  RESOLUTION  NO.  27. 

( Stevens-Murray.) 

Be  it  resolved  by  the  Senate  of  the  Fifty-ninth  General  Assembly  of 
the  State  of  Tennessee,  the  House  of  Representatives  concurring,  That 
a  committee  of  six  be  appointed  by  the  Governor  of  the  State  of  Ten- 
nessee, two  from  each  grand  division  of  the  State,  to  investigate  the 
question  of  assessment  and  taxation  in  the  State  and  make  a  report  in 
writing  to  the  present  General  Assembly  of  the  State,  the  result  of 
their  said  investigation,  and,  in  conjunction  with  the  sub-committee 
from  the  Finance,  Ways  and  Means  Committee  appointed  by  its  said 
chairman,  frame  a  bill  or  bills,  same  to  be  presented  to  the  present 
General  Assembly  for  their  consideration. 

SECTION  2.  Be  it  further  resolved  by  the  Senate,  the  House  concur- 
ring, That  the  said  committee  so  appointed  by  the  Governor  is  hereby 
authorized  and  empowered  to  hire  a  secretary  and  a  sufficient  number 
of  clerks  and  stenographers,  who  shall  receive  not  more  than  six  dol- 
lars ($6)  per  day  for  their  services,  to  assist  them  in  said  investigation. 

SECTION  3.  Be  it  further  resolved,  That  the  said  committee  so  ap- 
pointed by  the  Governor  shall  not  be  compensated,  except  that  their 
expenses  while  making  the  said  investigations  shall  be  defrayed  by  the 
State. 

SECTION  4.  Be  it  further  resolved.  That  five  thousand  dollars  ($5,000), 
or  so  much  thereof  as  may  be  necessary  to  defray  the  expenses  of  this 
said  investigation,  be,  and  the  same  is  hereby,  appropriated,  same  to 
be  included  in  the  general  appropriation  bill. 

Adopted  January  26,  1915. 

Hu.  C.  ANDERSON, 
Speaker  of  the  Senate. 


WM.  P.  COOPER. 
Speaker  .of  the  House  of  Representatives. 


Approved  January  27,  1915. 


TOM  C.  RYE, 

Governor. 


36 


COMMITTEE  ON  TAXATION. 


PROVISIONS  GOVERNING  TAXATION  IN  TEN- 
NESSEE'S CONSTITUTIONS. 

1796. 

ARTICLE  I.,  SECTION  26.  All  lands  liable  to  taxation  in  this  State,  held 
by  deed,  grant,  or  entry,  shall  be  taxed  equal  and  uniform,  in  such 
manner  that  no  one  hundred  acres  shall  be  taxed  higher  than  another, 
except  town  lots,  which  shall  not  be  taxed  higher  than  two  hundred 
acres  of  land  each;  no  freeman  shall  be  taxed  higher  than  one  hundred 
acres  and  no  slave  higher  than  two  hundred  acres  on  each  poll. 

ARTICLE  I.,  SECTION  27.  No  article  manufactured  of  the  produce  of 
this  State  shall  be  taxed  otherwise  than  to  pay  inspection  fees. 

1834. 

ARTICLE  II.,  SECTION  28.  All  lands  liable  to  taxation,  held  by  deed, 
grant,  or  entry ;  town  lots,  bank  stock,  slaves  between  the  ages  of  twelve 
and  fifty  years,  and  such  other  property  as  the  Legislature  may  from 
time  to  time  deem  expedient,  shall  be  taxable.  All  property  shall  be 
taxed  according  to  its  value,  that  value  to  be  ascertained  in  such  man- 
ner as  the  Legislature  shall  direct,  so  that  the  same  shall  be  equal  and 
uniform  throughout  the  State.  No  one  species  of  property  from  which 
a  tax  may  be  collected  shall  be  taxed  higher  than  any  other  species  of 
property  of  equal  value.  But  the  Legislature  shall  have  power  to  tax 
merchants,  pedlars,  and  privileges,  in  such  manner  as  they  may  from 
time  to  time  direct.  A  tax  on  white  polls  shall  be  laid,  in  such  man- 
ner and  of  such  amount  as  may  be  prescribed  by  law. 

ARTICLE  II.,  SECTION  29.  The  General  Assembly  shall  have  power  to 
authorize  the  several  counties  and  incorporated  towns  in  this  State  to 
impose  taxes  for  county  and  corporation  purposes,  respectively,  in  such 
manner  as  shall  be  prescribed  by  law;  and  all  property  shall  be  taxed 
according  to  its  value,  upon  the  principles  established  in  regard  to 
State  taxation. 

ARTICLE  IV.,  SECTION  1.  All  freemen  of  color  shall  be  exempt  .  .  . 
from  paying  a  free  poll  tax. 

1870. 

ARTICLE  II.,  SECTION  28.  All  property — real,  personal,  or  mixed — shall 
be  taxed;  but  the  Legislature  may  exempt  such  as  may  be  held  by  the 
State,  by  counties,  cities,  or  towns,  and  used  exclusively  for  public  or 
corporation  purposes,  and  such  as  may  be  held  and  used  for  purposes 
purely  religious,  charitable,  scientific,  literary,  or  educational,  and  shall 
exempt  one  thousand  dollars'  worth  of  personal  property  in  the  hands 
of  each  taxpayer,  and  the  direct  product  of  the  soil  in  the  hands  of  the 
producer  and  his  immediate  vendee.  All  property  shall  be  taxed  accord- 
ing to  its  value,  that  value  to  be  ascertained  in  such  manner  as  the 
Legislature  shall  direct,  so  that  taxes  shall  be  equal  and  uniform 
throughout  the  State.  No  one  species  of  property  from  which  a  tax 
may  be  collected  shall  be  taxed  higher  than  any  other  species  of  prop- 
erty of  the  same  value;  but  the  Legislature  shall  have  power  to  tax 
merchants,  peddlers,  and  privileges,  in  such  manner  as  they  may  from 
time  to  time  direct.  The  portion  of  a  merchant's  capital  used  in  the 

37 


COMMITTEE  ON  TAXATION. 


purchase  of  merchandise  sold  by  him  to  non-residents  and  sent  beyonc 
the  State  shall  not  be  taxed  at  a  rate  higher  than  the  ad  valorem  tax 
on  property.  The  Legislature  shall  have  power  to  levy  a  tax  on  in- 
comes derived  from  stocks  and  bonds  that  are  not  taxed  ad  valorem. 
All  male  citizens  of  this  State  over  the  age  of  twenty-one  years,  except 
such  persons  as  may  b'e  exempted  by  law  on  account  of  age  or  other 
infirmity,  shall  be  liable  to  a  poll  tax  of  not  less  than  fifty  cents  nor 
more  than  one  dollar  per  annum.  Nor  shall  any  county  or  corporation 
levy  a  poll  tax  exceeding  the  amount  levied  by  the  State. 

ARTICLE  II.,  SECTION  29.  The  General  Assembly  shall  have  power  to 
authorize  the  several  counties  and  incorporated  towns  in  this  State 
to  impose  taxes  for  county  and  corporation  purposes,  respectively,  in 
such  manner  as  shall  be  prescribed  by  law;  and  all  property  shall  be 
taxed  according  to  its  value,  upon  the  principles  established  in  regard 
to  State  taxation. 

ARTICLE  II.,  SECTION  30.  No  article  manufactured  of  the  produce  of 
this  State  shall  be  taxed  otherwise  than  to  pay  inspection  fees. 


COMMITTEE  ox  TAXATION*. 


GOVERNOR  RYE'S  RECOMMENDATIONS  CON- 
CERNING TAXATION,  QUOTING  THE  DEM- 
OCRATIC PLATFORM  PROVISIONS,  IN 
MESSAGE  TO  THE  LEGISLATURE, 
JANUARY  18,  1915. 

STATE  TAX  COMMISSION-. 

If  the  property  of  the  State  were  listed  for  taxation  at  its  fair  market 
valuation,  and  if  all  the  hidden  personal  property  that  never  shows  up 
on  the  tax  lists  were  brought  to  light,  the  general  assessment  of  prop- 
erty for  the  State  would  be  increased  threefold.  Reasonably  good  laws 
in  other  States  and  good  administration  of  the  laws  have  resulted  in 
more  than  double  the  amount  of  property  being  listed  for  taxation  and 
in  reductions  of  the  tax  rate.  The  most  effective  machinery  for  mak- 
ing assessments  and  administering  the  laws  relating  to  the  assessment 
and  equalization  of  property  values  is  a  State  Tax  Commission,  with 
broad  and  ample  powers  in  matters  of  administration  and  in  the  em- 
ployment of  assessors.  The  Democratic  platform  strongy  expressed 
the  policy  of  the  party  on  this  subject;  and,  as  it  will  be  the  guide  for 
a  majority  of  this  body,  I  am  quoting  it  in  full  here  as  follows: 

"  In  the  assessment  of  property,  we  favor  a  policy  having  for  its  ob- 
ject a  fair,  equitable,  and  just  treatment  of  all  taxpayers  alike.  We 
oppose  discrimination  as  among  the  different  classes  of  taxpayers  and 
demand  that  all  property — real,  personal,  mixed — be  compelled  to  bear 
its  proportionate  part  of  the  tax  burden,  subject  only  to  those  exemp- 
tions authorized  by  the  Constitution  of  our  State.  Especially  do  we 
demand  that  personalty  of  every  character  not  .otherwise  exempt,  in- 
cluding intangible  corporate  property,  be  made  to  bear  its  share  of  the 
tax  levy  as  now  required  of  farm  lands  and  other  classes  of  real  prop- 
erty. We  consider  it  to  be  no  greater  detriment  to  the  public  welfare 
to  omit  from  the  assessments  landed  estates  of  a  prosperous  farmer 
than  to  permit  the  hidden  securities  of  thrifty  capitalists  and  tax  dodg- 
ers to  entirely  escape  the  tax  rolls.  While  it  must  be  admitted  that 
many  millions  of  dollars'  worth  of  personal  property  annually  escapes 
assessment  in  our  State,  it  cannot  be  denied  that  there  is  scarcely  a 
foot  of  soil  that  is  not  each  year  forced  to  yield  a  high  tax  tribute  that 
the  laws  demand.  We  declare  and  instruct  for  the  thorough  modifica- 
tion, revision,  and  reconstruction  of  the  laws  of  Tennessee  with  refer- 
ence to  the  assessment  and  collection  of  all  taxes,  to  the  end  that  all 
property  in  this  State  may,  with  least  expense  and  vexation  to  the  peo- 
ple, be  made  to  bear  its  proper  and  equitable  tax  burden;  and  to  this 
end  we  declare  and  instruct  for  the  passage  of  legislation  which  will 
insure: 

"  1.  That  all  taxes  shall  be  promptly,  fairly,  and  equally  assessed; 
and  that  all  taxes,  so  nearly  as  possible,  be  collected  while  currently 
due,  without  the  necessity  of  vexatious  and  expensive  tax  litigation. 

"  2.  That  current  assessments  may  be  so  thorough  and  fair  that 
necessity  for  any  back  assessments  shall  be  reduced  to  an  absolute 
minimum,  and  shall  be  limited  to  the  proper  and  equitable  and  inex- 

39 


>MMITTEE   ON    TAXATION. 

pensive  back  assessment  of  property  which  has  been  omitted  entirely, 
and  which,  as  a  result  of  actual  fraud,  has  been  inadequately  assessed. 

"  3.  We  declare  in  favor  of  the  passage  of  an  Act  to  the  effect  that 
after  property  has  been  regularly  enlisted  and  assessed  by  the  Tax  As- 
sessor and  its  value  fixed  and  passed  by  a  County  Board  of  Equalization, 
and  after  having  passed  the  County  Board  of  Equalization,  such  prop- 
erty shall  not  be  made  subject  to  back  assessment. 

"  4.  We  favor  the  collection  of  such  limited  back  taxes  as  can  by  the 
result  of  diligence  be  collected  when  due.  The  collection  of  such  back 
taxes  should  be  promptly  and  inexpensively  made  by  the  County  Trus- 
tee, aided  by  the  County  Attorney  or  Attorney-General,  and  such  reve- 
nue should  be  turned  into  the  treasury. 

"  5.  That  a  Tax  Commission  be  created  and  empowered  to  make  all 
tax  assessments  uniformly  and  thoroughly. 

"  6.  Back  tax  litigation  should  not  be  expensive,  vexatious,  or  pro- 
ductive of  burdens  to  the  citizens.  We  pledge  our  nominee  for  Gov- 
ernor, when  elected,  to  appoint  a  commission  of  six  competent  men, 
two  from  each  grand  division  of  the  State,  and  who  will  serve  without 
compensation,  to  carry  out  the  provisions  of  this  platform  with  refer- 
ence to  taxation." 

It  will  be  observed  that  the  Democratic  platform  pledges  the  ap- 
pointment of  a  commission  of  six  competent  men  to  serve  without  com- 
pensation, while  investigating  and  preparing  a  bill  creating  a  perma- 
nent Tax  Commission  and  a  complete  system  of  laws  on  this  subject. 
I  will  announce  these  appointments  without  delay;  and  in  view  of  the 
fact  that  they  are  to  serve  without  compensation,  I  suggest  to  the  Gen- 
eral Assembly  that  an  appropriation  be  made  covering  their  actual  and 
necessary  expenses  while  engaged  in  this  work.  I  further  suggest  that 
the  Speakers  of  your  bodies  designate  members  of  the  Committees  on 
Finance,  Ways  and  Means  to  act  as  a  sub-committee  and  work  in  con- 
junction with  the  committee  which  I  shall  appoint.  By  hard  and  faith- 
ful work  these  committees  should  be  able  to  submit  a  bill  in  plenty 
time  for  full  consideration  before  adjournment. 

INDEPENDENT  DEMOCRATIC  PLATFORM   PLANK  ON 
TAXATION,  1914. 

As  to  the  fiscal  affairs  of  the  State,  we  favor  a  thorough  overhaul- 
ing of  the  present  system  of  taxation,  without  the  bias  of  factionalism 
and  without  the  motive  of  political  revenge,  but  for  the  benefit  of  the 
State. 

REPUBLICAN  PLATFORM  PLANK  ON  TAXATION,  1914. 

We  condemn  the  present  back-tax  system  on  account  of  its  injustice 
to  the  individual,  its  discouraging  effect  *on  the  growth  and  progress  of 
the  State,  and  the  notorious  graft  that  has  resulted  from  it. 

We  congratulate  the  present  Comptroller  upon  the  fact  that  he  has 
so  far  succeeded  in  administering  this  objectionable  law  free  from  any 
suspicion  or  complaint  of  graft.  The  laws  of  taxation  in  this  State  are 
in  need  of  a  thorough  overhauling.  We  believe  in  making  the  assess- 
ment and  equalization  laws  so  thorough  and  strict  that  every  class  of 
assessable  property  in  every  part  of  the  State  will  be  made  to  bear  its 
just  proportion  of  the  expenses  of  the  government;  and  we  also  believe 
that  when  the  property  has  been  thus  assessed  and  the  assessment 
passed  by  such  an  equalization  board,  the  same  should  be  final  for  that 
year,  and  that  the  citizens  should  not  be  harassed  by  a  back  assessment 

40 


COMMITTEE  ox  TAXATION. 

or  reassessment,  except  in  cases  where,  by  the  omission  or  fraud  of 
the  property  holder,  equity  has  not  been  had. 

We  favor  a  bi-partisan  Commission  on  Taxation,  to  be  appointed  by 
the  Governor  of  the  State,  whoever  he  may  be.  We  indorse  the  course 
of  Governor  Hooper  in  opposing  the  enactment  of  the  bill  in  the  last 
Legislature  which  proposed  to  empower  the  Legislature  to  elect  a  Com- 
mission on  Taxation  by  the  usual  log-rolling  process.  Such  a  law,  with 
the  kind  of  commission  that  would  have  been  elected,  would  have  been 
tenfold  worse  than  the  present  system  in  its  imposition  on  the  taxpay- 
ers of  the  State. 


41 


>.U.MITTKK    ON    TAXATION. 


ORGANIZATIONS,  OFFICIALS,  AND 
CITIZENS  HEARD  FROM.          hi 

In  the  hearings  before  this  Committee  the  following  organizations, 
officials,  and  other  citizens  presented  statements: 

Tennessee  Manufacturers'  Association,  through  Hon.  T.  R.  Preston 
and  John  Stagmaier,  of  Chattanooga,  and  Capt.  T.  F.  Bonner,  President, 
and  C.  C.  Gilbert,  Secretary,  of  Nashville;  Board  of  Commerce,  of  Knox- 
ville,  by  John  D.  Caldwell;  Nashville  Commercial  Club,  by  W.  R. 
Manier,  J.  L.  McWhorter,  and  Joseph  Frank;  Business  Men's  Associa- 
tion, of  Nashville,  by  J.  H.  Allison,  B.  N.  Curry,  Joseph  White,  C.  A. 
Winter,  and  C.  L.  Cornelius;  Real  Estate  Exchange,  of  Nashville, 
by  James  Palmer  and  G.  R.  Gillespie;  Memphis  Cotton  Exchange,  by 
J.  P.'Norfleet,  John  H.  Gage,  and  Paul  Dillard;  Tennessee  Highway 
Association,  by  Edward  Meyer;  Southern  Appalachian  Coal  Dealers' 
Association,  by  John  E.  Patton,  of  Chattanooga,  J.  K.  Keeney,  of  Cum- 
berland Gap,  and  George  N.  Camp,  of  Knoxville;  Vanderbilt  University, 
by  Chancellor  J.  H.  Kirkland,  Dr.  St.  George  L.  Sioussat,  and  Dr.  L.  C. 
Glenn;  Castle  Heights  School,  of  Lebanon,  by  Prof.  L.  L.  Rice;  Inter- 
national Pressmen's  Union,  by  Hon.  George  L.  Berry,  of  Hawkins 
County;  Farmers'  Union,  by  L.  M.  Rhodes,  President,  of  Huntingdon: 
Knoxville  Real  Estate  Exchange,  by  H.  M.  Branson. 

The  following  State  officials  testified  before  the  Committee: 

Commissioner  of  Agriculture  T.  F.  Peck;  Superintendent  of  Banks  J. 
L.  Emerson;  State  Treasurer  Porter  Dunlap;  Secretary  of  State  R.  R. 
Sneed ;  Comptroller-elect  John  B.  Thomason ;  Comptroller  G.  P.  Woollen ; 
Chairman  of  Railroad  Commission  B.  A.  Enloe;  Railroad  Commis- 
sioner George  N.  Welch;  former  Railroad  Commissioner  Frank  Avent; 
Attorney-General  Frank  M.  Thompson;  State  Geologist  A.  H.  Purdue; 
State  Auditor  George  M.  Clark;  Revenue  Agent  W.  A.  Owens,  of  East 
Tennessee;  Revenue  Agent  Tom  Greer,  of  Middle  Tennessee;  State 
Archivist  G.  W.  Dyer. 

The  following  county  and  city  officials  appeared  before  the  Commit- 
tee: 

Assessor  Jesse  Webb,  of  Davidson  County;  Commissioner  of  Ac- 
counts Lyle  Andrews,  of  Nashville;  City  Attorney  A.  G.  Ewing,  of 
Nashville;  County  Court  Clerk  W.  F.  Hunt,  of  Davidson  County;  As- 
sistant City  Assessor  R.  H.  Anderson,  of  Memphis;  Assessor  Emil  Wass- 
man,  of  Hamilton  County;  Assessor  W.  P.  Trotter,  of  Montgomery 
County;  Assessor  J.  B.  Cowley,  of  Maury  County;  County  Court  Clerk 
Jesse  L.  Henson,  of  Knox  County;  County  Judge  C.  Holman,  of  Rob- 
ertson County;  Assessor  George  Stevens,  of  Bedford  County;  Mayor 
Hilary  Howse,  of  Nashville;  former  County  Judge  Key,  of  Smith 
County;  Assessor  D.  K.  Reeves,  of  Smith  County;  Assessor  G.  B. 
Dillon,  of  Benton  County;  Assessor  M.  G.  Corlett,  of  Williamson 
County;  County  Court  Clerk  W.  O.  Watson,  of  Putnam  County;  former 
Assessor  J.  F.  Shipp,  of  Hamilton  County;  Assessor  L.  B.  Thompson, 
of  Wilson  County;  former  Assessor  J.  M.  Williams,  of  Davidson  County. 

The  following  other  citizens  appeared  before  the  Committee: 

Hon.  W.  B.  Swaney,  of  Chattanooga;  Phil  S.  Taylor,  of  Washington 
County;  Dr.  John  D.  Blanton,  of  Nashville;  Judge  John  M.  Gaut,  of 
Nashville;  Mr.  Norman  Farrell,  Jr.,  of  Nashville;  Prof.  Marvin  T.  Dun- 

42 


COMMITTEE  ox  TAXATION. 

can,  of  Nashville;  J.  M.  Williams,  of  Nashville;  Hervey  Whitfield,  of 
Clarksville;  E.  F.  P'Pool,  of  Nashville;  Prof.  E.  P.  Moses,  of  Nashville; 
Maj.  E.  B.  Stahlman,  of  Nashville;  J.  G.  Jetton,  of  Murfreesboro ; 
Charles  J.  Haase,  of  Memphis;  Eugene  Clark,  of  Memphis;  John 
Fletcher,  of  Nashville;  A.  M.  Leach,  of  Montgomery  County;  Mr.  Wood- 
ward, of  Bedford  County;  Col.  J.  H.  Acklen,  of  Nashville. 

In  addition  to  the  views  presented  in  person  before  the  Committee 
at  the  public  hearings,  carefully  prepared  statements  in  writing  were 
sent  in  by  many  interested  in  tax  reform,  and  also  drafts  of  proposed 
bills  and  sections  of  bills,  all  of  which  proved  of  value. 

Complete  general  assessment  bills  were  filed  by  the  Tennessee  Man- 
ufacturers' Association  and  by  the  Public  Efficiency  League  of  Knox- 
ville.  Acts  dealing  with  particular  phases  of  the  subject  were  sub- 
mitted by  H.  M.  Branson,  of  Knoxville;  Attorney-General  D.  J.  Cald- 
well,  of  Obion  County;  and,  in  response  to  a  request  of  the  Committee, 
by  Edward  E.  Barthell,  Esq.,  of  Nashville. 

The  Board  of  Trade,  of  Bristol,  by  N.  B.  Remine,  Secretary,  and  the 
Young  Men's  Good  Government  League,  of  Hamilton  County,  by  E.  E. 
Brown,  President,  forwarded  resolutions  to  the  Committee. 

The  following  have  filed  their  views  in  writing  with  the  Committee: 
Charles  Brown,  President  of  the  Bank  of  Granville,  Granville;  J. 
R.  Browder,  of  Lenoir  City;  Hon.  G.  D.  Lancaster,  of  Chattanooga; 
S.  M.  Chambliss,  of  Chattanooga;  Gen.  D.  J.  Caldwell,  of  Union  City; 
J.  A.  Millard,  of  Bristol;  Col.  Sam  L.  King,  of 'Bristol;  William  Mathes, 
of  Johnson  City;  H.  M.  Branson,  of  Knoxville;  County  Judge  W.  M. 
Pollard,  of  Davidson  County;  Trustee  John  Y.  Peete,  of  Tipton  County; 
Col.  L.  D.  Tyson,  of  Knoxville;  R.  P.  Williams,  of  Knoxville;  B.  B.  C. 
Witt,  of  Ducktown;  D.  C.  Young,  of  Sweetwater;  J.  B.  Young,  of  Bemis; 
C.  G.  Bond,  of  Jackson;  J.  H.  Birchfield,  of  Milligan  College;  W.  F. 
Barry,  of  Charleston;  J.  D.  Clement,  of  Benton;  C.  F.  Dalton,  President, 
Trades  and  Labor  Council,  Jackson;  Joseph  W.  Deadrick,  of  Edge- 
more;  W.  E.  Dyer,  of  Chattanooga;  A.  S.  Elder,  of  Trenton;  J.  P.  John- 
son, of  Crossville;  J.  N.  King,  of  Cookeville;  J.  W.  Lillard,  of  Decatur; 
Oscar  C.  Myers,  of  Chattanooga;  W.  S.  Nunley,  of  Vernon. 

The  following  County  Court  Clerks  wrote  suggestions  as  to  improve- 
ments of  the  tax  laws  and  gave  information  as  to  the  conditions  in 
their  counties: 

John  G.  Hearing,  Bradley. 

J.  F.  Cooper,  Campbell. 

R.  L.  Sharp,  Claiborne. 

J.  A.  Gibson,  Coffee. 

R.  L.  Conyers,  Crockett. 

T.  R.  Dickson,  Dickson. 

W.  J.  Blevins,  Fentress. 

E.  P.  Shelton,  Grundy. 

J.  G.  Templin,  Hamblen. 

J.  W.  Clift  (Trustee),  Hamilton. 

J.  W.  Page,  Henderson. 

W.  I.  Dale,  Henry. 

W.  L.  Downey,  Hickman. 

D.  H.  Goodrich,  Humphreys. 

George  R.  Loftis,  Jackson. 

W.  D.  Hill,  Jefferson. 

C.  S.  Carney,  Lauderdale. 

J.  R.  Brewer,  Lawrence. 

Noah  Prince,  McNairy. 

J.  A.  Thompson,  Madison. 

R.  M.  Tillery,  Meigs. 

43 


COMMITTEE  ON  TAXATION. 

J.  H.  Centon,  Polk. 
J.  A.  Kemp,  Smith. 
G.  W.  Williams,  Stewart. 
Harvey  Bromley,  Wayne. 
Joseph  Gessler,  Warren. 
H.  L.  Coe,  Wilson. 

The  following  County  Assessors  wrote  suggestions  as  to  improve- 
ments of  the  tax  laws  and  gave  information  as  to  the  conditions  in 
their  counties: 

G.  B.  Dillon,  Benton. 

J.  D.  Sullivan,  Bledsoe. 

H.  E.  McQueen,  Carter. 

Garfield  Russell,  Claiborne. 

W.  L.  Flynn,  Cumberland. 

H.  L.  Moore,  DeKalb. 

J.  D.  Morton,  Fayette. 

George  D.  Simmons,  Franklin. 

F.  M.  Tidwell,  Giles. 

O.  M.  Kilday,  Greene. 

C.  D.  Hillis,  Grundy. 

N.  A.  McMillan,  Hardin. 

J.  S.  Culpepper,  Henry. 

R.  L.*  Carlew,  Humphreys. 

A.  Lichlyter,  Jefferson. 

W.  S.  Bunton,  Johnson. 

C.  D.  McCullor,  McNairy. 
T.  H.  Temple,  Madison. 
W.  A.  Langley,  Morgan. 

D.  T.  Cantrel,  Overton. 
Charles  R.  Countiss,  Putnam. 
Frank  P.  Ewton,  Sequatchie. 
W.  R.  Madewell,  Van  Buren. 
S.  C.  Goodin,  Weakley. 

The  Committee  desires  to  express  its  appreciation  of  the  contribu- 
tions of  all  the  citizens  and  organizations  whose  names  have  been  re- 
corded and  to  any  others  who  may  have  been  accidentally  omitted  from 
this  list;  also  to  the  press  of  the  State  for  its  inestimable  assistance; 
and  especially  to  Hon.  T.  R.  Preston  and  Hon.  W.  B.  Swaney,  of  Chat- 
tanooga; Hon.  E.  E.  Barthell,  of  Nashville;  Dr.  John  Lee  Coulter,  of 
Peabody  College;  and  Hon.  Frank  M.  Thompson,  Attorney-General  of 
the  State. 


44 


COMMITTEE  ox  TAXATION. 


COST  TO  THE  STATE  OF  CONDUCTING  THE 

INVESTIGATION  OF  ASSESSMENT 

AND  TAXATION. 

Traveling  expenses  of  members,  to  date $  409  25 

Rental*  of  headquarters,  members'  hotel  expenses,  telephone 

calls,  etc.,  to  date 397  15 

Publishing  the  Committee's  report  (McQuiddy  Printing  Co.) . .  242  21 

Salary  of  secretary  (February  1  to  April  1) 200  00 

Salary  of  stenographer  (February  8  to  March  10) 112  50 

Incidental  expenses,  stamps,  stationery,  outside  stenographic 

work,  etc.,  to  date 84  20 

Estimated  expenses  not  yet  encountered 150  00 


Total    $1,595  31 

March  10,  1915. 


COMMITTEE  ON  TAXATION. 


Consolidated  statement  showing  principal  sources  of  revenue  of  State  of  Ten- 
nessee and  principal  items  of  disbursements,  1903-04  and  1913-14. 


RECEIPTS 

1913-14 

1903-04 

Trustees 

$3,586,810  62 

$2  362  043  49 

County  Court  Clerks 

1,643,415  40 

1  091  776  79 

Circuit  Court  Clerks 

115,047  90 

95  283  71 

Chancery  Court  Clerks 

25,917  78 

14  986  11 

Other  Court  Clerks 

19,031  23 

15  366  45 

State  tax,  railroads  _  _     

672,296  73 

419,136  16 

State  tax,  street  railway  companies 

98,298  71 

State  tax,  insurance  companies. 

725,270  97 

377,666  87 

State  tax,  telephone  companies         _   _         

119,108  70 

27,861  70 

State  tax,  charters 

109,828  72 

67  127  00 

State  tax,  other  companies 

67,236  48 

70  879  47 

Fees,  coal  oil  inspectors 

146,340  73 

85  446  98 

Fees,  Sec'y  of  State  and  corporation  reports  
Fees,  insurance  . 

207,369.21 
20,298  20 

24,626.60 

6,758  87 

Maintenance  of  convicts  _   _ 

967,395  90 

992,662  58 

Bureau  of  Agriculture    _  _   _   _ 

129,687  11 

25,696  50 

School  fund.                         __   _ 

106,424  83 

Insane  hospitals    _  _          _    _  _    _ 

170,427.48 

Tennessee  Industrial  School 

59,206.62 

Other  State  institutions.        _       _   _ 

24,331.86 

1,627  50 

Interest  on  deposits 

38,332  61 

State  Banking  Department  

20,217.20 

Miscellaneous 

94,585  64 

54,061  31 

Total  receipts  .  _ 

$9,166,870  63 

$5,733,008  09 

DISBURSEMENTS 

1913-14 

1903-04 

State  prosecutions 

$     342,499  36 

$     336,483  78 

Interest,  State  debt 

978,626  50 

1,012,876  00 

Interest,  school  funds 

546,368  74 

School  fund  

2,819,081  10 

67,477  36 

Salary  (judicial)      

473,414  61 

291,978  14 

Salary  (other)      ______     ____ 

191,719.95 

112,606  19 

Clerk  hire 

73,946  11 

32  570  32 

Legislative  per  diem,  mileage,  and  expense  
Capitol  expense 

174,471.86 

38,879  58 

88,499.20 
22,828  12 

Supreme  and  Court  of  Appeals  expense 

55,275  40 

15,389  38 

Other  principal  officers'  expense 

54,922  60 

13,853  35 

Charities  _      _      ______ 

1,333,838.21 

715,293  35 

Pensions  (soldiers  and  widows  )  _ 

1,628,547.29 

363,791.54 

Maintenance  of  convicts  __       _   _ 

811,467.29 

619,093.45 

Bureau  of  Agriculture  

105,263.96 

27,814.87 

Sinking  fund 

208,000  00 

601,277  00 

National  Guard 

49,670  17 

16,759  84 

Mine  Inspector     

32,799  17 

13,151  79 

Geological  Survey  _       _  _     

31,411.68 

Board  of  Health  _   _ 

32,303.44 

8,135.74 

Public  printing 

25,942  48 

9,905  59 

Banking  Department 

23,579  63 

Miscellaneous 

293,919  58 

110,484  41 

Total  disbursements        _    _   _      

$9,779,579.97 

$5,025,637.16 

46 


COMMITTEE  ON  TAXATION. 


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value. 

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come  to  county  seat  and  give  m  their  property 
for  taxation. 

Assessor  recommends  higher  assessments,  lower  rate. 
People  should  come  to  assessor. 

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COMMITTEE  ox  TAXATION. 


BILLS  RECOMMENDED  TO  THE  LEGIS- 
LATURE BY  THE  COMMITTEE. 


PROVIDING  THE  RATE  OF  TAXATION. 

AN  ACT  to  provide  the  rate  of  taxation  for  the  State  of  Tennessee  and 
the  counties  and  municipalities  thereof. 

SECTIOX  1.  Be  it  enacted  by  the  General  Assembly  of  the  State  of 
Tennessee,  That  the  taxes  on  every  one  hundred  dollars'  worth  of  prop- 
erty shall  be  fifty  cents  for  the  year  1915  and  for  every  subsequent  year 
thereafter,  thirty-five  cents  of  which  shall  be  for  state  purposes  and 
fifteen  cents  for  school  purposes;  provided,  however,  that  if  the  total 
assessment  of  all  property,  including  merchants'  capital,  shall  in  the 
year  1915  or  any  subsequent  year  be  eight  hundred  million  dollars,  the 
tax  rate  for  the  State  shall  be  thirty-two  and  one-half  cents,  and  for 
schools  fourteen  cents,  on  the  one  hundred  dollars'  worth  of  property; 
if  the  total  assessment  shall  be  nine  hundred  million  dollars,  the  tax 
rate  for  state  purposes  shall  be  thirty  cents,  and  <or  schools  twelve  and 
one-half  cents,  on  the  one  hundred  dollars'  worth  of  property;  if  the 
total  assessment  shall  be  one  billion  dollars,  the  tax  rate  for  state  pur- 
poses shall  be  twenty-seven  and  one-half  cents,  and  for  schools  eleven 
and  one-half  cents,  on  the  one  hundred  dollars'  worth  of  property;  if 
the  total  assessment  shall  be  one  billion  two  hundred  million  dollars, 
the  tax  rate  for  state  purposes  shall  be  twenty -four  cents,  and  for 
schools  ten  cents,  on  the  one  hundred  dollars'  worth  of  property;  and 
if  the  total  assessment  shall  be  one  billion  five  hundred  million  dollars, 
the  tax  rate  for  state  purposes  shall  be  twenty  cents,  and  for  schools 
eight  cents,  on  the  one  hundred  dollars'  worth  of  property. 

SECTION  2.  Be  it  further  enacted,  That  no  county  or  municipality 
shall  levy  taxes  for  the  year  1915  more  than  six  per  centum  in  excess 
of  the  levy  for  1914;  and  in  no  subsequent  year  shall  any  county  or 
municipality  levy  taxes  for  more  than  six  per  centum  in  excess  of  the 
taxes  levied  for  the  previous  year;  provided,  however,  that  the  provi- 
sions of  this  section  shall  not  apply  to  privilege  taxes. 

SECTION  3.  Be  it  further  enacted.  That  all  laws  or  parts  of  laws  in 
conflict  with  this  act  be,  and  the  same  are,  hereby  repealed. 

SECTION  4.  Be  it  further  enacted.  That  this  act  take  effect  from  and 
after  its  passage,  the  public  welfare  requiring  it. 


52 


COMMITTEE  ox  TAXATION. 


GENERAL  ASSESSMENT  BILL. 

AN  ACT  to  provide  more  just  and  equitable  laws  for  the  assessment 
and  collection  of  revenue  for  state,  county,  and  municipal  purposes; 
and  to  repeal  all  laws  in  conflict  with  the  provisions  of  this  act 
whereby  revenue  is  collected  from  the  assessment  of  real  estate,  per- 
sonal property,  privileges,  and  polls. 

SECTION  1.  Be  it  enacted  by  the  General  Assembly  of  the  State  of 
Tennessee,  That  all  property — real,  personal  and  mixed — shall  be  as- 
sessed for  taxation  for  state,  county,  and  municipal  purposes,  except 
such  as  is  declared  exempt  in  the  next  section. 

SECTION  2.  Be  it  further  enacted,  That  the  property  herein  enumer- 
ated, and  none  other,  shall  be  exempt  from  taxation: 

(1)  All  property  of  the  United  States,  all  property  of  the  State  of 
Tennessee,  of  any  county  of  said  state,  or  of  any  incorporated  city, 
town,  or  taxing  district  in  the  state  that  is  used  exclusively  for  public 
or  municipal  corporation  purposes. 

(2)  All  property  belonging  to  any  religious,  charitable,  scientific,  or 
educational  institution,  not  operated  for  profit,  when  physically  used 
exclusively  and  directly  for  the  purpose  for  which  said  institution  was 
created.     All  property  belonging  to  such  institutions  physically  used 
in  secular  business,  or  maintained  for  rental  purposes,  although  the 
revenue  therefrom  becomes  a  part  of  the  general  fund  for  the  purposes 
of  the  institution,  shall  be  taxed  on  its  whole  or  partial  value  in  pro- 
portion as  the  same  may  be  physically  used  in  secular  business,  or 
maintained  for  rental  purposes.     All  unimproved  property  belonging 
to  such  an  institution  not  physically  used  by  it  for  its  purposes  shall 
likewise  be  taxed. 

(3)  All  cemeteries  not  operated  for  profit,  places  of  burial  used  as 
such,  and  monuments  of  the  dead. 

(4)  All  roads,  streets,  alleys,   and  promenades   where   condemned, 
dedicated,  or  thrown  open  for  public  travel  or  use  free  of  charge. 

(5)  All  growing  crops,  of  whatever  nature  or  kind,  the  direct  prod- 
uct of  the  soil  of  this  state,  in  the  hands  of  the  producer  or  his  imme- 
diate vendee,  and  manufactured  articles  from  the  produce  of  this  state 
in  the  hands  of  the  manufacturer. 

.  (6)  Personal  property  of  the  value  of  one  thousand  dollars  in  the 
hands  of  each  taxpayer;  provided,  that  any  conveyance  of  personal 
property,  including  money,  bank  stock,  notes,  choses  in  action,  accounts, 
or  any  other  evidence  of  indebtedness,  in  trust  or  otherwise,  to  any 
minor  by  the  parent  or  parents  thereof,  shall  be  presumed  to  have  been 
made  for  the  purpose  of  avoiding  the  payment  of  taxes  thereon,  if  it 
appear  that  such  conveyance  affects  enough  personal  property  which, 
added  to  the  amount  of  personal  property  remaining  in  the  hands  of 
such  parent  or  parents,  will  exceed  in  the  aggregate  the  amount  here- 
tofore set  out  as  exempt  from  taxation;  and  it  shall  be  the  duty  of  the 
assessor  to  list  all  such  property  as  the  property  of  the  person  making 
such  conveyance  or  creating  such  trust;  provided,  that  the  maker  or 
makers  of  the  trust  instrument  or  conveyance  or  delivery  of  such  prop- 
erty may  appear  before  the  board  of  equalization  of  the  county  and  by 
proof  establish  the  bona  fides  of  such  trust  or  conveyance. 

53 


COMMITTEE  ox  TAXATION. 

SECTION  3.  Be  it  further  enacted.  That  in  order  to  provide  revenue  for 
state,  county  and  municipal  purposes,  real  estate  and  personal  property, 
privileges,  and  polls  shall  be  assessed  annually.  The  first  assessment 
under  this  act  shall  be  made  in  the  year  1915. 

SECTION  4.  Be  it  further  enacted.  That  all  property  of  every  kind 
shall  be  assessed  at  its  actual  cash  value.  The  term  "  actual  cash 
value,"  whenever  used  in  this  act,  is  hereby  defined  to  mean  the 
amount  of  money  the  property  would  sell  for  if  sold  at  a  fair,  voluntary 
sale,  considering  its  earning  capacity,  its  future  increment,  its  possi- 
bility for  every  sort  of  user,  and  any  and  all  elements  that  go  to  make 
up  its  fair  cash  value. 

SECTION  5.  Be  it  further  enacted.  That  the  basis  of  all  assessments 
shall  be  as  follows — to  wit: 

(1)  To  assess  the  property  to  the  person  or  persons  owning  or  claim- 
ing to  own  the  same  on  the  tenth  day  of  January  of  the  year  for  which 
the  assessment  is  made,  if  known;  if  not,  to  unknown  owners. 

(2)  To  assess  the  property  held  by  executors  and  administrators  in 
the  county,  district,  or  ward  in  which  the  decedent  resided  at  the  time 
of  death  until  such  shall  have  been  distributed;    but  if  the  decedent 
lived  in  another  state,  then  the  property  shall  be  assessed  where  the 
personal  representative  resides. 

(3)  To  assess  personal  property  held  by  trustees  and  guardians  of 
minors,  married  women,  and  lunatics  to  each  guardian  or  trustee  in 
the  county,  ward,  or  district  where  such  minor,  married   woman,  or 
lunatic  resides,  if  a  resident  of  the  state;  and  if  a  nonresident,  then  in 
the  county,  ward,  or  civil  district  in  which  the  guardian  or  trustee 
resides;  provided,  that  guardian  funds  shall  be  assessed  in  the  county 
where  the  guardian  having  control  thereof  renders  his  annual  settle- 
ment. 

(4)  All  stocks  in  banks,  savings  banks,  or  banking  associations,  loan 
companies,  trust  companies,  insurance  companies,  investment  compa- 
nies, cemetery  companies,  and  all  other  corporations  not  assessable  by 
the  members  of  the  Railroad  Commission  of  the  State  of  Tennessee, 
shall  be  assessed  as  hereinafter  provided  in  sections  21-25  pertaining  to 
the  same.     However,  the  property  of  every  street  railroad,  gas  and  elec- 
tric  light   company,   including  its  franchises   used   within   any   town, 
city,  or  taxing  district  where  the  office  of  the  company  is  located  out- 
side of  such  incorporated  city  or  town  or  taxing  district,  but  with  the 
main  property  within  the  city,  shall  be  taxed  in  the  city,  town,  or  tax- 
ing district  as  if  the  office  were  situated  within  the  city  limits;  and  the 
property,  including  franchises  of  the  corporations  and  joint  stock  com- 
panies that  lie  wholly  or  mainly  within  any  incorporated  city,  taxing 
district,  or  town,  or  whose  chief  business  is  within  any  incorporated 
city,  taxing  district,  or  town,  shall  be  assessed  for  taxation  in  such  city, 
taxing  district,  or  town;  provided,  that  all  realty  and  tangible  person- 
alty shall  be  taxed  in  the  district  where  situated. 

(5)  Hereafter  all  mineral  and  timber  interests  and  all  other  inter- 
ests of  whatsoever  kind  or  character,  whether  for  life  or  a  term  of 
years,  in  real  estate,  including  the  interest  which  the  lessee  may  have 
in  and  to  the  improvements  erected  upon  land  where  the  fee,  reversion, 
or  remainder  therein  is  exempt  to  the  owner,  and  which  said  interest 
or  interests  is  or  are  owned  separate  from  the  general  freehold,  shall 
be  assessed  to  the  owner  separately  from  the  other  interests  in  such 
real  estate,  which  other  interest  shall  be  assessed  to  the  owner  thereof, 
all  of  which  shall  be  assessed  as  real  estate. 

54 


.  COMMITTEE  ox  TAXATION. 

SECTIOX  6.  Be  it  further  enacted,  That  in  assessing  real  estate,  the 
following  shall  be  shown: 

(1)  The  description  of  the  property. 

(2)  The  name  of  the  true  owner  or  owners,  if  known. 

(3)  The  actual  cash  value  of  the  land  or  lot,  exclusive  of  improve- 
ments, the  improvements,  and  also  all  interests  in  real  estate  or  im- 
provements thereon  assessable  as  under  subdivision  5,  section  5,  of  this 
act.    The  taxpayer  shall,  in  making  out  his  schedule,  state  how  much 
insurance  he  carries  upon  his  improvements. 

SECTION  7.  Be  it  further  enacted,  That  in  describing  real  estate,  the 
following  rules  shall  be  observed:  The  number  of  town  lots  (and 
blocks)  of  the  property,  as  a  whole  or  a  part,  shall  be  given;  the  name 
of  the  street,  avenue,  alley,  or  road  on  which  it  fronts  and  the  front 
feet  thereof  shall  be  given,  unless  the  size,  dimensions,  and  quantity 
make  it  impossible,  then  to  be  given  in  acres.  If  the  property  is  a 
part  of  any  known  subdivision,  its  size,  dimensions,  quantity,  and  front 
feet  or  acres  shall  be  given.  In  describing  tracts  of  land,  when  it  can 
be  done,  the  surveyor's  district,  range,  township,  section,  and  sectional 
subdivision  shall  be  designated  and  the  number  of  acres.  The  lands  by 
which  the  described  tract  is  bounded  shall  also  be  given  in  the  assess- 
ment. When  part  of  a  known  tract,  subdivision,  lot,  or  block  of  land 
is  assessed  by  a  description  which  identifies  it,  any  other  part  of  it 
which  is  assessed,  but  not  so  identified,  shall  be  held  to  embrace  all  of 
such  tract,  subdivision,  lot,  or  block  not  included  in  the  part  identified; 
but  a  failure  to  assess  according  to  this  act  shall  not  in  any  wise 
vitiate  the  assessment  or  sale  of  lands  under  the  same,  and  parol  testi- 
mony shall  always  be  admissible  to  supply  a  description  of  land  on  the 
assessment  roll  or  in  conveyance  for  taxes,  where  such  testimony  will 
show  what  land  was  assessed  and  sold,  and  there  is  enough  in  the  de- 
scription on  the  roll  or  conveyance  to  be  applied  to  a  particular  tract  or 
parcel  of  land  by  aid  of  such  testimony. 

SECTION  8.  Be  it  further  enacted.  That — 

(1)  All  personal  property  of  every  kind  shall  be  assessed  under  the 
following  classifications: 

CLASS  1.  Household  and  kitchen  furniture,  tableware,  libraries,  jew- 
elry, sewing  machines,  guns  (more  than  one  gun),  musical  instruments, 
and  all  other  personal  property  of  a  similar  character. 

CLASS  2.  Farming  implements,  machinery,  wheeled  vehicles,  automo- 
biles, tools  of  all  kinds,  and  all  other  personal  property  of  a  like  char- 
acter. 

CLASS  3.  All  kinds  of  live  stock,  including  dogs. 

CLASS  4.  Steamboats,  ferryboats,  and  other  kinds  of  water  craft. 

CLASS  5.  All  evidences  of  indebtedness  issued  by  the  state  or  by  any 
political  subdivision  thereof,  and  all  evidences  of  indebtedness  the  pay- 
ment of  which  is  secured  by  lien,  trust  deed,  or  mortgage  on  real  (or 
personal)  property,  shall  be  classed  as  bonds. 

CLASS  6.  All  shares  of  stock,  except  when  the  corporate  property  or 
capital  stock  is  assessed  in  lieu  of  the  shares  of  stock  as  hereinafter 
provided  in  sections  21  and  22  of  this  act. 

CLASS  7.  Notes,  duebills,  choses  in  action,  accounts,  mortgages,  or 
any  other  evidence  of  indebtedness,  and  money  on  hand  or  on  deposit 
or  invested  in  any  manner  in  this  state  or  elsewhere  not  otherwise  as- 
sessed. 

CLASS  8.  All  other  personal  property  not  hereinbefore  designated. 

CLASS  9.  All  personal  property  which  is  a  part  of  the  capital  invested 
in  the  business  of  a  merchant  shall  not  be  assessed  separately,  but 

55 


COMMITTEE  ON  TAXATION. 

shall  be  assessed  as  part  of  the  capital  as  provided  in  section,  26  of  this 
act. 

(2)  In  assessing  steamboats  and  ferryboats,  boats  navigating  within 
streams  within  or  bordering  on  this  state,  the  same  shall  only  be  as- 
sessed to  the  extent  of  the  interest  therein  of  any  person,  company,  cor- 
poration, or  firm  residing  or  doing  business  in  this  State. 

(3)  All  bonds  as  defined  in  class  5  of  subdivision  1  of  this  section 
shall  be  listed  at  their  par  value.     The  tax  list  shall  also  show  the 
gross  annual  income  from  such  bonds,  and  the  tax  thereon  shall  be  one- 
tenth  part  of  such  gross  annual  income.     This  tax  shall  go  to  the  state, 
and  shall  be  in  lieu  of  all  other  taxes  on  such  bonds.     No  county,  mu- 
nicipality, or  taxing  district  shall  have  the  right  to  levy  such  tax  or 
otherwise  tax  this  class  of  property. 

(4)  The  fact  that  any  personal  property  may  be  deposited,  incum- 
bered,  or  transferred  or  pledged  as  collateral  or  loaned  or  out  of  the 
possession  of  the  owner,  whether  the  same  be  in  or  out  of  this  state, 
shall  not  in  any  wise  excuse  the  same  from  being  listed  and  reported 
for  taxation. 

(5)  In  the  assessment  of  personal  property,  the  taxpayer  shall,  in 
making  out  his  tax  schedule,  state  how  much  insurance  he  carries  on 
his  personal  property. 

SECTION  9.   Be  it  further  enacted,  That — 

(1)  The  assessors  elected  at  the  regular  August  election,  1912,  shall 
hold  their  office  for  the  term  of  four  years,  beginning  January  1,  1913. 

(2)  In  case  of  vacancies,  the  commission  shall  appoint  an  assessor, 
who  shall  hold  office  until  the  first  of  January  following  the  next  regu- 
lar August  election.    The  assessor  shall  be  elected  by  the  qualified  vot- 
ers at  the  first  regular  August  election  coming  after  the  vacancy,  and 
he  shall  hold  office  from  the  first  day  of  the  following  January  to  the 
close  of  the  term  for  which  his  predecessor  was  elected. 

(3)  There  shall  be  elected  one  assessor  for  the  whole  county  of  each 
and  every  county  in  the  state.     The  office  of  civil  district  assessor  is 
hereby  abolished  wherever  the  same  now  exists. 

(4)  No  member  of  the  county  court  shall  ,be  eligible  to  hold  the  office 
of  assessor. 

(5)  Where  not  otherwise  provided  by  existing  lawvthe  compensation 
of  assessors  shall  be  as  follows:  In  counties  having  a  population  of  120,- 
000  or  over  according  to  the  federal  census  of  1900  or  any  subsequent ' 
census,  the  assessor  shall  be  paid  out  of  the  county  treasury  a  salary 
of  $4,000.     In  counties  having  a  population  of  over  60,000  and  less  than 
120,000  according  to  the  federal  census  of  1900  or  any  subsequent  cen- 
sus, the  assessor  shall  be  paid  out  of  the  county  treasury  a  salary  of 
$2,500.     In  all  other  counties,  the  salary  of  the  assessor  shall  be  fixed 
by  the  county  court,  either  at  the  January  or  April  term  of  the  county 
court  preceding  the  election  at  which  the  assessor  is  to  be  elected;  and 
when  so  fixed,  the  same  shall  not  be  changed  during  the  four  years  for 
which  the  assessor  is  to  be  elected,  to  be  paid  out  of  the  county  treas- 
ury; but  in  no  case  shall  the  compensation  exceed,  for  the  assessor  and 
his  deputies,  twenty-five  cents  for  each  person  assessed  with  real  and 
.personal  estate    (the  personal  exceeding  $1,000)    and  poll,  twenty-five 
cents  for  each  person  assessed  with  personal  estate  only    (exceeding 
$1,000  in  value)   and  poll,  fifteen  cents  for  each  person  assessed  with 
real  estate  only  and  fifteen  cents  for  each  additional  assessment  of  sep- 
arate realty,  twenty-five  cents  for  each  person  assessed  with  real  estate 
and  poll,  fifteen  cents  for  each  person  assessed  with  personal  estate 
only  (exceeding  $1,000  in  value),  twenty  cents  for  each  person  assessed 

56 


COMMITTEE  ON  TAXATION. 

with  real  and  personal  estate  only  (exceeding  $1,000  in  value),  and  five 
cents  for  each  person  legally  listed  for  a  poll  only. 

(6)  It  shall  be  the  duty  of  the  assessor  to  deduct  the  $1,000  exemp- 
tion of  personal  property  on  all  assessment  blanks. 

(7)  Whenever  the  assessor  of  any  county  finds  that  he  cannot,  by 
devoting  his  entire  time  and  attention  to  the  duties  of  the  office,  make 
the  assessments  of  property  and  polls  as  required  by  this  act,  he  is 
hereby  authorized  to  appoint  one  or  more  deputies,  with  the  permission 
of  the  commission,  with  all  the  powers,  duties,  and  liabilities  of  the 
assessor,  and  they  shall  take  the  same  oath  required  of  the  assessor. 
The  assessor  shall  be  liable  for  any  malfeasance,  misfeasance,  or  non- 
feasance  of  his  deputies. 

(8)  In  counties  of  60,000  inhabitants  or  over  according  to  the  fed- 
eral census  of  1910  or  any  subsequent  census,  the  assessor  shall,  within 
ten  days  after  the  end  of  each  month,  make  affidavit  that  the  employ- 
ment of  such  additional  help  was  necessary,  and  shall  give  the  name  of 
each  deputy  and  the  amount  of  his  compensation,  and  that  such  com- 
pensation is  reasonable.     Said  affidavit  shall  be  filed  with  the  county 
court  clerk  and  become  a  part  of  the  public  record.     In  no  case  shall 
the  aggregate  annual  compensation  of  the  deputies  of  any  county  as- 
sessor exceed  the  salary  of  the  county  assessor  by  more  than  fifty  per 
cent. 

SECTION  10.   Be  it  further  enacted,  That — 

(1)  The  assessor  of  each  county  shall,  on  or  before  the  first  day  of 
January  next  succeeding  his  election,  enter  into  a  bond,  with  two  or 
more  good  and  sufficient  securities,  payable  to  the  State  of  Tennessee, 
in  the  sum  of  ten  thousand  dollars,  to  be  approved  by  the  county  judge 
o/  chairman  of  the  county  court,  conditioned  that  he  shall  impartially, 
honestly,  and  to  the  best  of  his  knowledge  and  ability  assess  all  proper- 
ties at  their  actual  cash  values;   impartially  and  faithfully  discharge 
the  duties  of  his  office,  obey  the  requirements  of 'his  oath  of  office  and 
of  the  assessment  laws  of  the  state,  and  pay  to  the  State  of  Tennessee 
all  penalties  of  every  kind  and  character  incurred  by  him   (or  by  his 
deputy)  and  imposed  by  this  act,  and  also  to  be  liable  for  any  wilful, 
knowing,  or  negligent  failure  by  which  any  property  subject  to  taxation 
shall  be  or  remain  unassessed  or  be  assessed  at  less  than  its  actual  cash 
value. 

(2)  Each  assessor  shall  take  and  subscribe  to  the  following  oath  of 
office  before  the  judge  or  chairman  of  the  county  court,  which  said  oath 
shall  be  attached  to  and  filed  with  said  bond  in  the  office  of  the  clerk  of 
the  county  court — viz.: 

"  I,  —  — ,  assessor  (or  deputy  assessor)  of  property  and  polls 

of  the  county  of  -  — ,  State  of  Tennessee,  do  solemnly  swear 

(or  affirm)  that  I  will  report  privileges;  that  I  will  assess  all  property — 
real,  personal,  and  mixed — at  its  actual  cash  value,  and  all  polls  of  said 
county  of  -  — ,  to  the  best  of  my  knowledge  and  ability,  with- 

out fear,  favor,  or  affection;  that  I  will  administer  the  oath  or  affirma- 
tion required  by  law,  or  have  the  same  administered,  to  all  persons  list- 
ing property;  that  I  will  diligently  inquire,  so  that  no  person  shall  be 
passed  over  or  shall  fail  to  have  an  opportunity  to  give  a  list  of  his 
taxable  property,  and  furnish  taxpayers  schedules  as  required  by  law; 
that  I  will  truly  report  all  persons  who  shall  fail  or  refuse  to  list  their 
taxable  property  or  who  have  to  my  knowledge  given  in  a  false  or  fraud- 
ulent list;  and  that  I  will  faithfully,  impartially,  and  honestly  dis- 
charge my  duties  as  assessor  according  to  law  to  the  best  of  my  knowl- 
edge and  ability;  and  that  I  will  administer  the  oath  in  person  to  all 
property  owners  as  the  law  requires,  when  practicable;  and  that  I  will 

57 


COMMITTEE  ox  TAXATION. 

not  assess  or  list  any  person  with  property  or  polls  solely  by  substitu- 
tion or  copy  from  former  assessment,  so  help  me  God. 

" ,  Assessor." 

"  Sworn  to  and  subscribed  before  me,  this  -  -  day  of 


(3)  Each  deputy  assessor  shall  likewise  takp  his  oath  and  file  the 
same  with  the  county  court  clerk  before  entering  upon  the  discharge 
of  his  duties. 

(4)  Each  assessor,  when  he  makes  his  report  of  his  assessment,  as 
hereinafter  provided,   shall  accompany  the   same  with  the   following 
oath,  to  be  made  and  subscribed  to  before  the  county  judge  or  chairman 
of  the  county  court  and  filed  in  the  office  of  the  trustee: 

"  I,  -  — ,  assessor  of  the  county  of  -  — ,  State  of 

Tennessee,  do  solemnly  swear  (or  affirm)  that  I  have  set  out  in  the 
foregoing  assessment  list  all  the  property — real,  personal,  and  mixed — 
and  all  the  privileges  and  polls  in  said  county  of  -  — ,  as  far  as 

ascertainable,  to  the  true  owners  thereof,  and  that  I  have  required  lists 
to  be  filled,  sworn  to  (or  affirmed),  and  filed  by  all  property  holders  or 
their  agents  or  attorneys,  and  reported  such  as  have  not  done  so  to  the 
district  attorney,  and  reported  lists  of  all  parties  liable  for  polls,  and 
that  I  have  estimated  the  value  of  all  property — real,  personal,  or 
mixed — at  its  actual  cash  value,  as  prescribed  by  law,  to  the  best  of  my 
knowledge  and  ability,  without  fear,  favor,  or  affection;  and  that  I  have 
faithfully  discharged  my  duties  and  kept  my  oath  of  office  as  assessor 
according  to  law  to  the  best  of  my  knowledge  and  ability,  so  help  me 
God." 

"  Sworn  to  and  subscribed  before  me,  this  -  -  day  of 


(5)  Each  deputy  assessor  shall  take  and  file  with  the  county  trustee 
said  oath  of  office  upon  completion  of  his  duties  as  assessor. 

(6)  It  is  hereby  declared  unlawful  for  any  assessor  or  deputy  as- 
sessor to  enter  upon  or  undertake  the  performance  of  the  duties  of  an 
assessor  without  first  taking  said  preliminary  oath  of  office,  or  to  fail, 
neglect,  or  refuse  to  take  and  accompany  the  said  report  of  his  assess- 
ment list  with  the  subsequent  oath  heretofore  prescribed. 

(7)  It  shall  be  the  duty  of  the  county  judge  or  chairman  of  the 
county  court  and  of  the  county  trustee  promptly  to  report  to  the  district 
attorney  and  to  the  commission  any  failure,  neglect,  or  refusal  of  any 
assessor  or  deputy  to  comply  with  the  foregoing  requirements  of  this 
act. 

(8)  It  shall  be  unlawful  for  any  assessor  or  deputy  wilfully,  know- 
ingly, or  negligently  to  permit  or  allow  any  property  subject  to  taxation 
to  be  or  remain  unassessed  or  omitted  from  assessment,  or  wilfully, 
knowingly,  or  negligently  to  assess  any  property  at  less  than  its  cash 
value,  or  to  assess  any  property  or  polls  solely  by  substitution  or  copy 
from  former  assessment. 

(9)  It  shall  be  the  duty  of  each  assessor  to  make  out  a  full  and  com- 
plete list  and  transmit  the  same  to  the  district  attorney  of  the  district 
and  to  the  commission  of  all  taxpayers  within  his  jurisdiction  who  shall 
have  failed  or  refused  to  take  the  oath  or  affirmation  required  by  law 
to  tax  schedules,  and  also  of  all  taxpayers  who  shall  have  refused,  failed, 
or  'neglected  to  return  as  prescribed  by  law  such  tax  schedules  to  the 
assessor. 

(10)  Such  lists  shall  be  prepared  and  forwarded  at  the  same  time 
the  assessment  lists  are  returnable  by  law  to  the  county  trustee.     It 
shall  be  the  duty  of  the  district  attorney,  upon  the  reception  of  such 
lists  transmitted  to  him  by  the  assessor,  ex  officio  to  prosecute  such  per 
sons  as  are  included  in  the  same  for  the  misdemeanor  prescribed  by 

58 


COMMITTEE  ox  TAXATION. 

this  act.  It  shall  be  unlawful  for  any  assessor  to  fail,  refuse,  or  neg- 
lect to  make  out  such  list  and  transmit  the  same  to  the  district  attor- 
ney and  the  commission  as  herein  required. 

(11)  It  shall  be  a  misdemeanor  in  office  for  the  district  attorney 
negligently  to  fail  or  refuse  to  prosecute  such  persons  reported  to  him 
in  such  list. 

(12)  It  shall  be  unlawful  for  any  assessor  or  deputy  wilfully,  know- 
ingly, or  negligently  to  assess  any  property  subject  to  taxation  in  the 
names  or  the  initials  of  any  other  than  the  real  and  true  owner  thereof, 
and  for  each  of  such  offenses  he  shall  be  fined  not  less  than  five  dollars 
nor  more  than  twenty  dollars. 

(13)  It  shall  be  unlawful  for  any  assessor  or  deputy  to  fail,  refuse, 
or  neglect  to  perform,  obey,  and  observe  any  duties  or  requirements  of 
this  act  not  above  declared  unlawful. 

(14)  Before  any  county  judge  or  chairman  shall  approve  or  accept 
any  bond  of  any  assessor,  he  shall  read  the  bond  required  of  the  as- 
sessor to  the  assessor  and  his  sureties,  and  direct  their  attention  to  the 
duties  and  penalties  prescribed  by  this  act.     It  is  hereby  declared  a 
misdemeanor  in  office  for  any  county  court  clerk  to  fail  or  neglect  to 
keep  and  preserve  such  bonds  in  a  well-bound  book,  or  for  the  county 
judge  or  chairman  to  accept  or  approve  of  any  bond  herein  designated 
without  complying  with  the  foregoing  provisions. 

SECTION  11.   Be  it  further  enacted.  That — 

(1)  It  shall  be  the  duty  of  each  assessor  to  add  up  all  columns, 
showing  number  of  acres  assessed  and  their  value,  number  of  town 
lots  assessed  and  their  value,  separating  improvements  from  land  in 
each  case;  the  value  of  personalty  assessed,  separating  tangible  and  in- 
tangible personalty;   the  total  value  of  all  property  assessed,  and  the 
total  amount  of  exemptions,  in  his  county;    and  such   other  data  as 
the  commission  may  from  time  to  time  require,  before  his  books  shall 
be  received  by  the  trustee. 

(2)  Each  assessor  shall,  on  or  before  the  first  day  of  January  fol- 
lowing his  election,  execute  and  enter  into  a  new  bond  in  the  amounts 
now  provided  by  law  and  conditioned  as  directed  in  this  act;   and  it 
shall  be  unlawful  after  said  date  for  any  assessor  to  perform  the  du- 
ties of  assessor  without  giving  such  bond;   and  in  case  such  bond  is 
not  made  by  said  date,  his  office  shall  become  vacant  and  be  filled  as  is 
now  or  may  then  be  provided  by  law. 

SECTION  12.    Be  it  further  enacted.  That — 

(1)    It  shall  be  the  duty  of  the  assessor  in  person  or  by  deputy — viz.: 

(a)   To  go  on  the  premises  and  examine  realty  to  be  assessed. 

(&)  To  see  personally  each  taxpayer  residing  in  his  county  or  his 
agent  or  attorney  and  take  his  personal  statement  (filled  out  in  the 
blank  schedule  hereafter  mentioned)  of  all  property  of  such  taxpayer, 
whether  the  same  be  real,  personal,  or  mixed,  without  regard  to  any 
exemptions. 

(c)  If  any  taxpayer  is  a  nonresident,  or  if  the  owner  cannot  be 
found  or  seen  after  diligent  search,  the  assessor  shall  fill  out  such  state- 
ment, sign,  and  indorse  on  the  same  that  the  taxpayer  could  not  be 
found  after  diligent  search. 

(d)  In  such  case  it  shall  be  his  duty  to  examine  any  person  who 
he  may  have  reason  to  believe  has  any  knowledge  or  information  as 
to  the  property  of  the  taxpayer.     For  such  purpose  he  shall  have  the 
power  to  administer  oaths  and  compel  any  witness  to  answer,  and  it 
shall  be  the  duty  of  any  person  to  answer  when  called  upon  to  do  so  by 
any  assessor  or  his  deputy. 

59 


COMMITTEE  ON  TAXATION. 

(e)  Assessors  and  deputies  shall  have  like  powers  and  perform  like 
duties  when  there  is  any  reason  to  believe  or  suspect  that  any  tax- 
payer has  withheld  or  concealed  from  such  schedule  any  property  or 
failed  to  list  any  property,  which  may  be  done  by  questions  put  to  the 
taxpayer,  his  agent,  attorney,  or  any  other  person. 

(2)  Any  person  swearing  falsely  or  corruptly  or  knowingly  in  any 
material  statement  in  such  schedule  or  to  any  statement  made  as  a 
witness  to  such  assessor  or  deputy  shall  be  guilty  of  perjury  and  in- 
dictable for  the  same.     It  shall  be  the  duty  of  the  commission  to  inves- 
tigate any  such  cases  reported,  and  it  shall  have  the  power  to  call  on 
proper  authorties  to  bring  suits  to  prosecute  such  offenders,  and  also 
bring  civil  suits  for  damages. 

(3)  Any  witness  refusing  to  take  such  oath  or  make  such  answers 
when  called  upon  by  the  assessor  to  do  so  shall  be  guilty  of  a  misde- 
meanor, and,  upon  conviction,  shall  be  fined  not  less  than  ten  dollars 
nor  more  than  one  thousand  dollars. 

(4)  Such  assessor  or  deputy  shall  reduce  to  writing  such  statements 
as  may  be  made  by  any  property  holder  or  witness  under  the  foregoing 
provisions  and  file  the  same  in  his  office. 

•(5)  It  shall  be  the  duty  of  the  taxpayer,  his  agent  or  attorney,  to  fill 
out,  or  have  the  assessor  or  deputy  to  fill  out  for  him,  the  schedule  here- 
after provided  for;  and  the  assessor  or  deputy  assessor  shall  require  an 
oath  to  be  made  to  the  same,  personally  before  him  by  said  taxpayer  or 
the  agent  or  attorney  of  such  taxpayer,  to  the  correctness  of  the  items  and 
the  questions  therein,  and  that  said  schedule  fully  and  truly  and  with- 
out evasion,  reservation,  or  concealment  sets  out  all  properties  of  every 
kind  and  character  of  the  taxpayer  or  property  holder  therein  named; 
and  for  said  purpose  each  assessor  and  deputy  is  invested  with  the 
powers  to  administer  such  oath. 

(6)  If  any  taxpayer  shall   fail,  neglect,  or  refuse  to  fill  out  said 
schedule  and  each  question  fully  and  according  to  law,  sign,  and  swear 
(or  affirm)  to  the  same,  and  return  it  to  the  assessor  not  later  than  the 
first  day  of  July  of  each  year,  then  the  assessor  shall  make  the  assess 
ment  against  such  taxpayer. 

(7)  The  assessor  shall  note  upon  his  books  opposite  the  names  of 
taxpayers  who  have  refused,  neglected,  or  failed  to  fill  out  and  return 
said  schedule  and  whom  the  assessor  has  assessed  for  such  failure, 
neglect,  or  refusal.     Such  taxpayers  shall  be  notified  thereof  by  said 
assessor  or  his  deputies  at  least  five  days  before  the  board  of  equaliza- 
tion commences  its  annual  session,  and  said  taxpayers  must  show  good 
cause  why  said  assessment  should  not  be  made.     An  entry  of  the  notice 
shall  be  made,  together  with  the  date  thereof,  on  the  assessor's  books 
opposite  the  taxpayer's  name. 

(8)  If  the  taxpayer  fails,  neglects,  or  refuses  to  appear  before  the 
assessor  or  the  board  of  equalization  prior  to  its  final  adjournment, 
then  the  amount  thus   assessed   by   the   assessor   shall   be   conclusive 
against  the  taxpayer,  and  said  taxpayer  shall  be  required  to  pay  the 
taxes  on  said  amount;  provided,  however,  nothing  herein  shall  be  taken 
as  conclusive  against  the  state,  county,  or  municipality. 

(9)  Said  oath  shall  be  entered  on  such  schedule  beneath  the  same 
and  subscribed  and  sworn  to  by  the  party  listing,  but  nothing  in  this 
act  shall  be  construed  as  requiring  the  person  listing  the  property  to 
make  oath  to  the  value  of  the  property;  but  it  shall  be  the  duty  of  such 
assessor  to  examine  into  and  compute  the  actual  cash  value  for  tax- 
ation of  the  property  contained  in  the  list  made  out  by  himself  or  the 
taxpayer  or  the  agent  or  attorney  of  the  taxpayer. 

(10)  It  shall  be  a  misdemeanor  for  any  taxpayer  or  the  attorney  or 
agent  of  any  taxpayer  to  fail,  neglect,  or  refuse  to  fill  out  or  have  filled 

60 


COMMITTEE  ON  TAXATION. 

out  the  schedule  or  list  hereinafter  provided  for;  to  fail,  refuse,  or  neg- 
lect to  take  and  subscribe  to  the  oath  or  affirmation  required  to  such 
tax  schedules;  or  to  fail  to  return  the  same  to  the  assessor  as  pre- 
scribed by  law,  which  misdemeanor  shall,  upon  conviction,  be  punish- 
able by  a  fine  of  not  less  than  ten  dollars  nor  more  than  fifty  dollars. 

(11)  It  shall  be  the  duty  of  the  assessor  or  deputy  to  furnish  tax- 
payers with  the  schedule  hereafter  provided  for,  and  demand  or  require 
such  taxpayer  to  fill  out  such  schedule  and  to  take  and  subscribe  to  the 
oath  required -to  be  made  to  the  same. 

(12)  The  assessor  shall  report  at  frequent  intervals,  to  be  fixed  by 
the  commission,  on  the  progress  of  his  work  in  assessing  the  county. 
He  shall  set  out  on  blanks  furnished  by  the  commission,  or  by  the 
comptroller  under  direction  of  the  commission,  the  names  of  the  tax- 
payers from  whom  he  has  obtained  schedules  filled  out,  the  pieces  of 
property  on  which  he  or  his  deputies  have  actually  been,  the  assess- 
ments on  such  properties  for  the  previous  year,  and  the  valuations 
which  he  has  placed  upon  such  properties,  and,  if  sold  since  the  pre- 
vious assessment,  the  price  at  which  such  properties  were  sold. 

SECTION  13.  Be  it  further  enacted.  That  the  assessor  shall  assess  the 
property  in  each  district  and  ward  separately;  and  to  this  end  he  shall 
proceed  to  assess  the  property  in  a  district  or  ward,  commencing  at 
some  corner  or  outside  point  of  the  district  or  ward  and  assess  it  in 
rotation  as  it  joins  or  lies  contiguous  to  the  property  first  assessed, 
and  shall  proceed  in  the  regular  manner  until  he  shall  have  made  the 
circuit  of  the  district  or  ward,  and  he  shall  enter  such  assessment  in 
suitable  books  (by  districts  and  wards)  to  be  prescribed  by  the  com- 
mission and  furnished  by  the  county  court. 

SECTION  14.  Be  it  further  enacted.  That  in  any  suit  hereafter  brought 
in  any  of  the  courts  of  this  state  upon  any  note,  bill,  bond,  or  other 
chose  in  action  subject  to  taxation  under  the  provisions  of  this  act,  it 
shall  be  competent  for  any  defendant  to  such  action  to  allege  and  show 
in  defense  that  such  note,  bill,  bond,  or  other  chose  in  action  was  not 
given  in  or  included  in  the  owner's  assessment  for  taxation  for  the  pre- 
ceding year;  and  upon  such  defense  being  established  to  the  satisfac- 
tion of  the  justice,  court,  or  judge  trying  the  case,  the  owner  or  holder 
bringing  such  suit  upon  said  note,  bond,  bill,  or  other  chose  in  action 
shall  be  taxed  with  all  the  court  costs  of  the  case,  and  the  said  court 
shall  declare  in  rendering  such  judgment  a  lien  in  favor  of  the  state, 
county,  or  municipality  to  which  said  unpaid  taxes  are  shown  to  be 
payable,  said  lien  to  be  discharged  by  a  release  on  the  docket  of  said 
court  showing  the  payment  of  the  said  taxes,  said  release  to  be  executed 
by  the  proper  tax-collecting  officer  or  officers;  provided,  all  renewals  of 
notes,  bills,  bonds,  or  other  choses  in  action  shall  be  treated  as  one  con- 
tinuous debt;  and  provided,  further,  that  unsettled  accounts  shall  not 
be  included  in  this  section. 

SECTION  15.   Be  it  further  enacted,  That — 

(1)  It  is  hereby  made  the  duty  of  the  comptroller,  at  the  direction  of 
the  commission,  to  prepare  assessment  schedules  and  furnish  the  same 
to  the  assessor  of  each  county.     The  schedules  shall  be  so  prepared  as 
to  conform  to  the  different  classifications  of  assessments  provided  for 
in  this  act. 

(2)  The  schedule  shall  contain  such  questions  and  shall  be  in  such 
form  as  the  commission  may  promulgate. 

(3)  Said    comptroller   shall   in    like   manner   prepare    and    furnish 

61 


COMMITTEE  ON  TAXATION. 

schedules  to  be  used  by  the  assessor  in  assessing  corporate  property 
and  shares  of  bank  stock. 

(4)  All  schedules  prepared  by  the  comptroller  in  conformity  with 
this  act  shall  have  appended  to  the  schedule  the  respective  oaths  pre- 
scribed by  this  act. 

SECTION  16.  Be  it  further  enacted.  That  persons  acting  as  executors, 
administrators,  guardians,  agents,  attorneys,  clerks  of  any  court,  or  in 
any  fiduciary  capacity  whatever,  shall  make  a  return  of  the  property, 
moneys,  credits,  and  effects  held  or  controlled  by  them  in  any  of  said 
capacities,  separate  from  their  individual  returns,  showing  the  names 
of  the  person  or  persons  for  whose  use  and  benefit  such  is  held,  and  the 
same  shall  be  listed  separately  for  taxation;  provided,  that  every  such 
trust  estate  shall  be  entitled  to  the  same  exemption  as  if  owned  by  a  sin- 
gle taxpayer. 

SECTION  17.  Be  it  further  enacted,  That  in  all  cases  where  any  per- 
son or  persons  acting  in  a  fiduciary  capacity,  company,  firm,  corpora- 
tion, agent,  or  attorney,  shall  fail,  neglect,  or  refuse  to  return  to  the 
assessor  the  schedule  of  property  for  taxation  as  provided  for  in  this 
act,  the  assessor  shall  report  in  writing  the  fact  to  the  chairman  or 
judge  of  the  county  court,  who  shall  cite  the  person,  agent,  attorney, 
firm,  officer  or  officers  of  the  company  or  corporation  before  him,  and 
shall  demand  of  them  to  answer  the  questions  heretofore  provided  in 
this  act  under  oath  or  affirmation,  and  shall  have  power  to  punish  for 
contempt  for  failure  to  answer;  and  if  the  refusal  to  answer  is  per- 
sisted in,  the  judge  or  chairman  shall  make  such  an  assessment  in 
such  cases  from  the  best  information  that  he  can  obtain,  and  such  as- 
sessment shall  be  prima  facie  evidence  as  to  the  value  and  ownership 
of  the  property,  and  the  costs  accruing  by  proceedings  under  this  sec- 
tion shall  be  paid  by  and  be  charged  against  the  taxpayer  and  upon 
the  property. 

SECTION  18.  Be  it  further  enacted,  That  the  assessor  shall  make  a 
report  to  the  commission  of  the  assessment  list  on  or  before  the  first 
Monday  in  September  of  each  year  as  to  the  realty,  personalty,  privi- 
leges, and  polls,  and  turn  over  his  books  to  the  board  of  equali- 
zation, to  be  acted  upon  by  it  when  appointed,  as  hereinafter  provided, 
and  said  books  and  lists  are  thereafter  to  be  preserved  as  a  part  of  the 
office  records  of  the  office  of  the  assessor. 

SECTION  19.  Be  it  further  enacted,  That  whenever  there  is  an  error 
in  the  books  of  a  trustee  or  municipal  collector  in  the  valuation  or  de- 
scription of  property  where  the  same  occurs  in  an  error  in  transcrib- 
ing the  books,  or  other  error  material  to  valuation  or  description,  the 
assessor  shall  certify  the  facts  to  the  trustee  or  municipal  collector, 
who  shall  receive  the  tax  on  the  corrected  valuation  and  report  the  dif- 
ference in  his  errors  and  releasement  list,  or  shall  make  such  other  cor- 
rections as  such  certificate  may  show  right  and  proper. 

SECTION  20.  Be  it  further  enacted,  That  on  all  transfers  of  realty, 
trust  deeds,  and  mortgages,  both  real  and  collateral,  there  shall  be  lev- 
ied and  paid  in  lieu  of  all  other  taxes  a  state  tax  of  one  dollar  per  one 
thousand  dollars  on  the  consideration  or  amount  secured  by  said  trust 
deed  or  mortgage,  which  shall  be  in  the  case  of  a  transfer  of  realty  not 
less  than  the  value  of  the  property,  which  tax  shall  be  collected  by  the 
clerk  of  the  county  court;  and  the  county  register  is  hereby  required 
not  to  record  said  deed,  trust  deed,  or  mortgage  until  the  clerk  certifies 

62 


COMMITTEE  ox  TAXATION. 

that  this  tax  has  been  paid;  but  no  fee  shall  be  charged  for  such  cer- 
tificate or  registration  of  the  same,  and  such  certificate  need  not  be 
registered. 

SECTION  21.   Be  it  further  enacted,  That— 

(1)  Every  quasi-public  corporation  doing  business  and  being  oper- 
ated   in    this    state — such    as    gas    works,    waterworks,    electric    light 
companies,  and  all  other  corporations  public  in  their  character  and 
which  possess  rights,  franchises,  good  will,  and  privileges— shall  pay 
an  ad  valorem  tax  upon  the  actual  cash  value  of  its  corporate  property, 
including  its  franchises,  easements,  incorporeal  rights,  good  will,  and 
privileges,  and  all  other  corporate  property,  which  said  value  shall  not 
be  assessed  at  less  than  the  aggregate  actual  cash  value  of  both  its 
shares  of  stock  and  bonded  debt,  and  which  said  value  shall  be  com- 
puted by  looking  to  and  considering  the  market  value;  and  if  no  mar- 
ket value,  the  actual  value  of  such  stock  and  bonds  to  the  corporation; 
and  provided,  also,  that  the  assessed  value  of  the  corporate  realty  and 
tangible  personalty  otherwise  assessed  shall  be  deducted  in  making  the 
assessment  from  the  value  of  the  corporate  property  or  capital  stock. 
Real  estate  and  tangible  personalty  of  any  corporation  defined  in  this 
section  shall  be  assessed  in  the  same  mode  and  manner  and  where  sit- 
uate as  other  real  estate  and  tangible  personalty.     In  computing  the 
value  of  and  assessing  corporate  property  or  capital  stock  under  this 
section,  the  assessed  value  of  real  estate  and  tangible  personalty  shall 
be  deducted  from  the  aggregate  actual  cash  value  of  the  corporate  prop- 
erty or  capital  stock,  and  the  remainder  shall  constitute  the  value  upon 
which  the  assessment  shall  be  based.     The  value  of  the  capital  stock 
or  corporate  property  as  used  in  this  section  shall  be  construed  as  in- 
cluding all  tangible  and  franchise  value. 

(2)  All  corporations,  foreign  and  domestic,  other  than  those  here- 
inbefore designated  in  this  section  and  in  the  proviso  in  this  clause, 
shall  be  assessed  in  the  same  mode  and  manner  as  manufacturing  cor- 
porations set  out  in  section  22  of  this  act;  provided,  however,  section 
21  shall  not  be  construed  as  including  railroad,  street,  and  interurban 
electric  railway,  telegraph,  and  telephone  companies,  which  are  pro- 
vided for  in  other  laws;  nor  shall  it  be  construed  as  including  manu- 
facturing corporations,  which  are  provided  for  in  section   22  of  this 
act;   nor  banking,  building  and  loan,  loan,  investment,  insurance,  and 
cemetery  companies,  which  are  provided  for  in  section  24  of  this  act. 

(3)  The  assessment  and  taxation  of  corporate  property  provided  for 
in  subdivisions  1  and  2  of  this  section  shall  be  in  lieu  of  any  assessment 
of  and  tax  upon  the  shares  of  stock  of  any  corporation  so  assessed  and 
taxed  to  the  individual  owners  thereof. 

(4)  For  the  purpose  of  assessing  quasi-public  and  other  corporate 
property  defined  in  this  section,  the  president  or  chief  officer  in  charge 
of  and  operating  the  business  shall  fill  out  and  furnish,  upon  his  re- 
quest therefor,  to  the  assessor,  under  oath  and  in  writing,  an  assess- 
ment schedule  (to  be  returned  by  the  assessor  to  the  commission  for 
preservation),  which  schedule  shall  contain  such  questions  and  be  in 
such  form  as  the  commission  shall  promulgate. 

(5)  The  assessor  shall  in  the  premises  have  full  power  and  authority 
to  examine  witnesses,  to  inspect  or  require  the  production  of  books  or 
papers,  to  obtain  and  consider  any  evidence  other  than  that  contained 
in  said  statement  that  he  may  deem  material  or  necessary.     The  as- 
sessor shall  visit  and  inspect  the  property  whenever  practicable,  inform 
himself  as  to  the  value  of  the  same,  obtain  all  necessary  or  material 
evidence  of  the  property,  and  of  the  shares  of  stock  and  of  the  bonded 
debt,  either  from  the  statement  required  in  this  act  or  from  such  other 

63 


COMMITTEE  ON  TAXATION. 

sources  as  he  may  deem  proper  or  necessary;  the  gross  receipts  of  the 
business  for  each  of  the  last  two  years,  and  the  net  receipts  for  the 
same  period,  exclusive  of  amount  paid  for  interest  on  bonded  debt  or 
dividends  on  stock. 

SECTION  22.    Be  it  further  enacted.  That — 

(1)  All  persons,  copartners,  and  joint  stock  companies  engaged  in 
the  manufacture  of  any  goods,  wares,  merchandise,  or  other  articles  of 
value,  shall  pay  an  ad  valorem  tax  upon  the  actual  cash  value  of  the 
property — real,  personal,  or  mixed — which  is  used  and  held  for  the  pur- 
pose   of   manufacturing,    preparing,    completing,    and    finishing    goods, 
wares,  and  merchandise,  and  the  article  in  the  manufacture  of  which 
the  parties  aforesaid  shall  be  engaged;  provided,  the  value  of  articles 
manufactured  from  the  produce  of  the  state  in  the  hands  of  the  manu- 
facturer shall  be  deducted  in  assessing  the  property. 

(2)  Bach    manufacturing   corporation,    either    foreign    or   domestic, 
shall  pay  an  ad  valorem  tax  upon  the  actual  cash  value  of  its  capital 
stock  or  corporate  property,  including  its  franchises,  easements,  incor- 
poreal rights,  and  privileges,  and  all  other  corporate  property,  which 
said  value  shall  not  be  less  than  the  actual  cash  value  of  both  its  shares 
of  stock  and  its  bonded  debt,  and  which  said  value  shall  be  computed 
by  looking  to  and  considering  the  market  value;    and  if  no  market 
value,  the  actual  value  of  such  stocks  and  bonds;   provided,  that  the 
assessed  value  of  the  corporate  realty  and  tangible  personal  property 
otherwise  assessed,  and,  in  the  case  of  manufacturers,  the  value  of  the 
articles  manufactured  from  the  produce  of  the  state  in  the  hands  of 
the  manufacturers,  shall,  in  making  the  assessment,  be  deducted  from 
the  value  of  the  capital  stock  or  corporate  property. 

(3)  Real  estate  and  tangible  personal  property  of  any  corporation 
defined  in  this  section  shall  be  assessed  in  the  same  mode  and  manner 
and  where  situate  as  other  real  estate  and  tangible  personalty.     In 
computing  the  value  of  and   assessing  corporate  property   or  capital 
stock  under  this  section,  the  assessed  value  of  real  estate  and  tangible 
personalty,  and,  in  the  case  of  manufacturers,  the  actual  cash  value  of 
articles  manufactured  from  the  produce  of  the  state  in  the  hands  of  the 
manufacturer,  shall  be  deducted  from  the  aggregate  actual  cash  value 
of  the  corporate  property  or  capital  stock,  and  the  remainder  shall  con- 
stitute the  value  upon  which  the  assessment  shall  be  based. 

(4)  The  value  of  the  capital  stock  or  corporate  property  as  used  in 
this  section  shall  be  construed  as  including  all  tangible  and  intangible 
or  franchise  values. 

(5)  For  the  purpose  of  assessing  property  defined  in  this  section,  the 
assessor  shall  require  the  owner,  operator,  business  partner,  president, 
or  other  official  in  charge  of  or  operating  the  business,  to  fill  out  and 
furnish  to  the  assessor,  under  oath  and  in  writing,  an  assessment  sched- 
ule (to  be  returned  by  the  assessor  to  the  commission  for  preservation), 
which  schedule  shall  contain  such  questions  and  be  in  such  form  as  the 
commission  shall  promulgate. 

(6)  The  assessment  and  taxation  of  corporate  property  provided  for 
in  this  section  shall  be  in  lieu  of  any  assessment  of  and  tax  upon  the 
shares  of  stock  of  any  corporation  so  assessed  and  taxed  to  the  individ- 
ual owners  thereof. 

SECTION  23.    Be  it  further  enacted,  That — 

(1)  When  any  corporation,  foreign  or  domestic,  defined  in  sections 
21  and  22  of  this  act,  owns  property  in  this  and  another  state,  or  in 
more  than  one  county  in  this  state,  or  in  more  than  one  civil  district 
in  any  county,  the  capital  stock  or  incorporated  property  of  the  corpo- 

64 


COMMITTEE  ox  TAXATION. 

ration  shall,  except  as  hereinafter  provided  in  this  section  as  to  foreign 
corporations,  be  assessed  in  the  county  or  place  or  civil  district  fixed  in 
its  charter  for  the  meeting  of  its  stockholders;  and  in  case  such  place 
of  meeting  is  not  fixed  in  its  charter,  then  in  the  county  or  place  or 
civil  district  where  the  principal  office  or  place  of  business  of  the  cor- 
poration is  located,  which  said  assessment  shall  be  made  in  the  follow- 
ing manner — viz.: 

The  assessor  shall  compute  the  value  of  the  capital  stock  or  corpo- 
rate property  at  not  less  than  its  aggregate  actual  cash  value,  and  de- 
duct therefrom  the  assessed  value  of  all  real  estate  and  tangible  per- 
sonal property  in  the  state,  and  the  actual  cash  value  of  all  property 
situated  in  and  which  has  acquired  a  permanent  situs  in  other  states, 
as  hereinbefore  set  out,  wherever  the  same  may  be  situate,  and  the 
remainder  shall  constitute  the  assessable  value  of  the  corporate  prop- 
erty or  capital  stock  at  the  place  of  assessment.  Tangible  personal 
property  and  realty  of  such  corporation  shall  be  assessed  at  the  place 
or  in  the  district  where  the  same  is  situate  at  the  time  of  the  assess- 
ments and  by  the  proper  authority  at  that  place  designated  by  law.  The 
assessed  value  of  such  realty  and  tangible  personalty  shall  be  verified 
by  a  properly  certified  copy  from  the  assessment  rolls  or  lists,  which 
said  certified  copy  shall  accompany  the  statement  hereinbefore  required 
and  be  likewise  returned  by  the  assessor  to  the  commission  for  preser- 
vation. 

(2)  Foreign  corporations  mentioned  in  sections  21  and  22  having 
branch  factories  or  business  in  this  state  shall  only  be  assessed  on  the 
actual  cash  value  of  the  corporate  property  in  this  state;  provided,  how- 
ever, the  franchise  and  intangible  property  of  the  corporation  in  this 
state  shall  be  included  in  the  valuation  of  the  corporate  property  in  the 
state. 

SECTION  24.   Be  it  further  enacted,  That — 

(1)  The  shares  of  stock  of  stockholders  of  any  bank  or  banking  asso- 
ciation, savings  bank,  or  building  and  loan  or  loan  company,  or  invest- 
ment company,  or  insurance  company,  or  cemetery  company,  or  any 
company  or  incorporation  (other  than  such  as  are  defined  and  assess- 
able under  sections  21  and  22  of  this  act)  doing  business  in  this  state, 
whether  domestic  or  foreign,  shall  be  assessed  and  taxed   for  state, 
county,  and  municipal  purposes  as  the  personal  property  of  the  stock- 
holders, whether  they  reside  within  or  without  the  State  of  Tennessee; 
provided,  however,  the  assessment  of  such  shares  of  stock  as  the  prop- 
erty of  the  stockholders  shall  be  in  lieu  of  any  assessment  or  taxation 
of  the  capital  stock  or  corporate  property  of  such  corporation,  company, 
or  association.     Shares  of  stock  assessable  under  this  section  shall  be 
assessed  at  not  less  than  the  actual  cash  value  of  the  same,  less  the 
assessed  value  of  realty  and  tangible  property,  which  said  actual  cash 
value  of  shares  of  stock  shall  be  computed  by  looking  to  and  consider- 
ing the  market  value;  and  if  no  market  value,  the  actual  value  of  the 
•shares  of  stock,  or  from  any  other  evidence  of  the  value  of  the  same. 

(2)  Real   estate  and  tangible  personalty   of  any  corporation,  com- 
pany, or  association  defined  in  this  section  shall  be  assessed  in  the  same 
mode  and  manner  and  where  situate  as  other  real  estate  and  tangible 
personalty. 

(3)  But  in  computing  the  assessable  value  of  such  shares  of  stock, 
the  assessed  value  of  the  realty  and  tangible  personalty  shall  be  de- 
ducted from  the  value  of  the  shares  of  stock,  and  the  remaining  value 
constitute  the  value  upon  which  the  assessment  shall  be  made. 

(4)  Assessments  of  shares  of  stock  under  this  section  shall  be  made 

65 


COMMITTEE  ox  TAXATION. 

at  the  place,  ward,  or  district  of  the  town  or  county  in  which  the  cor- 
poration, association,  or  company  is  located. 

(5)  The  president  or  business  manager  of  any  corporation,  associ- 
ation, or  company  denned  in  this  section  of  this  act  is  hereby  required 
to  fill  out  and  furnish,  upon  oath,  to  the  assessor  an  assessment  sched- 
ule in  writing,  to  be  filed  with  the  commission  for  preservation,  which 
schedule  shall  contain  such  questions  and  be  in  such  form  as  the  com- 
mission shall  promulgate. 

(6)  The  commission  or  the  assessor  shall  have  full  power  to  sum- 
mon witnesses,  to  inspect  or  require  the  production  of  books  and  pa- 
pers, and  to  obtain  and  consider  any  evidence  other  than  said  state- 
ment which  they  may  deem  proper  or  necessary. 

(7)  For  the  purpose  of  this  act  and  for  taxation,  when  the  capital 
is  not  divided  into  shares  of  stock,  each  one  hundred  dollars  of  the  cap- 
ital invested  shall  be  held  as  one  individual  share,  and  such  shares  are 
defined  and  declared  to  be  personal  property  assessable  at  the  actual 
cash  value  of  same. 

(8)  If  the  president  or  business  manager  has  a  partner  or  partners, 
he  shall,  upon  his  oath,  furnish  to  the  assessor  in  writing  the  number 
of  shares,  ascertained  as  above  provided,  held  or  owned  by  such  partner 
or  partners  in  the  business,  which  shares  so  held  shall  be  assessed 
where  the  business  is  located,  as  hereinbefore  indicated. 

(9)  There  shall  be  kept  at  all  times  in  the  office  where  the  business 
of  such  bank  or  banking  association  or  other  corporation  included  in 
the  provisions  of  this  section  and  organized  under  the  authority  of  this 
state  or  of  the  United  States  shall  be  transacted  a  full  and  correct  list 
of  the  names  and  residences  of  the  stockholders  therein  and  the  num- 
ber of  shares  held  by  each,  and  such  list  shall.be  subject  to  the  inspec- 
tion of  the  commission  and  the  officers  authorized  to  assess  taxes  dur- 
ing the  business  hours  of  each  day  on  which  business  may  be  legally 
transacted. 

(10)  When  the  owner  of  stock  in  any  bank  or  banking  association 
or  other  corporation  included  in  the  provisions  of  this  section,  organ- 
ized under  the  laws  of  this  state  or  the  United  States,  shall  not  reside 
in  the  same  county  where  the  bank  or  corporation  OT  association  is  lo- 
cated, or  is  a  nonresident  of  this  state,  the  revenue  collector  for  the 
state  or  county  or  municipality  shall,  respectively,  have  the  power  to 
collect  the  tax  assessed  by  this  act  by  instituting  attachment  proceed- 
ings, and  said  tax  shall  be  and  remain  a  prior  lien  on  the  stock  until  the 
payment  of  the  same. 

(11)  For  the  purpose  of  collecting  such  taxes,  and  in  addition  to 
any  other  laws  of  this  state  relative  to  the  imposition  and  collection  of 
taxes,  it  shall  be  the  duty  of  such  corporation  to  pay  the  taxes  due  upon 
such  stock,  regardless  of  any  dividend  or  earnings  belonging  to  such 
stockholder,  a  prior  lien  being  hereby  declared  on  all  such  stock  on 
and  after  the  tenth  day  of  January  of  each  year,  and  the  said  corpora- 
tion being  hereby  subrogated  to  such  prior  lien  for  the  purpose  of  en- 
forcing repayment  of  any  taxes  that  may  be  so  paid  for  the  account  of 
any  such  stockholder. 

(12)  If  the  taxes  on  such  shares  shall  not  be  paid  by  such  corpora- 
tion, then  the  state,  county,  or  municipality  may,  after  such  tax  may 
have  become  delinquent,  proceed  to  collect  the  same  by  attachment  on 
said  shares  of  stock  in  any  court  of  competent  jurisdiction  through 
counsel  to  be  employed  for  that  purpose. 

SECTION  25.  Be  it  further  enacted,  That  this  act  shall  not  be  so  con- 
strued, and  shall  not  so  operate,  as  to  exonerate  and  release  from  tax- 
ation any  company  or  corporation  whose  charter  exempts  stock  and 

66 


COMMITTEE  ox  TAXATION. 

shares  thereof  from  taxation;  but  it  is  hereby  enacted  that  in  all  cases 
where  such  stock  is  exempted,  such  company  or  corporation  shall  he 
assessed  in  such  way  as  may  be  lawful;  and  in  all  cases  in  which,  by 
the  terms  or  legal  effect  of  the  charter,  the  shares  of  stock  in  any  cor- 
poration are  wholly  or  partially  exempt  from  taxation,  or  in  which  a 
rate  of  taxation  on  the  shares  of  the  stock  is  fixed  and  prescribed  and 
declared  to  be  in  lieu  of  all  other  taxes  for  state,  county,  and  municipal 
purposes,  there  shall  be  assessed  and  levied  a  tax,  at  a  rate  uniform 
with  the  rate  levied  upon  other  taxable  property,  upon  the  capital  stock 
of  said  corporation,  the  -value  of  which  capital  stock  shall  be  fixed  and 
returned  to  the  assessor  as  being  equal  to  the  aggregate  and  not  less 
than  the  actual  cash  value  of  all  shares  of  stock  in  said  corporation, 
including  the  net  surplus;  provided,  however,  that  where  the  state  has 
provided  in  the  charter  of  any  such  corporation  or  company  that  it 
shall  pay  a  stated  per  centum  on  each  share  of  stock  subscribed  annu- 
ally to  the  state,  which  shall  be  in  lieu  of  all  other  taxes,  it  shall  be 
entitled  annually  to  a  credit  therefor  upon  its  assessment  of  its  capital 
stock  as  hereinbefore  provided. 

SECTION  26.   Be  it  further  enacted,  That — 

(1)  Merchants  shall  pay  an  ad  valorem  tax  upon  the  capital  invested 
in  their  business  equal  to  that  levied  on  taxable  property. 

(2)  The  term  "merchant,"  as  used  in  this  act,  includes  all  persons, 
copartnerships,  or  corporations  engaged  in  trading  or  dealing  in  any 
kind  of  goods,  wares,  merchandise,  either  on  land  or  in  steamboats, 
wharf  boats,  or  other  craft  stationed  or  plying  in  the  waters  of  this 
state,  and  confectioners,  whether  such  goods,  wares,  or  merchandise 
be  kept  on  hand  for  sale  or  the  same  be  purchased  and  delivered  for 
profit  as  ordered. 

(3)  Persons,  firms,  companies,  or  corporations  engaged  in  the  busi- 
ness of  merchandising  other  than  such  as  are  embraced  in  subsequent 
subdivisions  of  this  section  shall  be  taxed  as  herein  set  out.     Such  per- 
sons, firms,  companies,  or  corporations  shall,  at  the  expiration  of  the 
period  of  the  bond  provided  for  in  this  act,  file  with  the  clerk  of  the 
county  court  of  the  county  a  statement,  under  oath,  showing  the  amount 
of  capital  invested  in  business  to  be  assessed  for  taxation;  but  under  no 
circumstances  shall  the  amount  to  be  assessed  be  less  than  the  value 
of  the  average  amount  of  stock  on  hand  during  the  preceding  year,  to 
be  ascertained  by  adding  together  the  value  of  the  highest  amount  of 
stock  on  hand  at  any  time  during  said  year  with  the  value  of  the  low- 
est amount  of  stock  on  hand  at  any  other  time  during  said  year  and 
dividing  the  same  by  two,  and  adding  thereto  the  actual  cash  value  of 
all  the  movable  fixtures  and  office  furniture  where  same  belong  to  and 
are  the  property  of  said  merchants;  said  statement  to  be  sworn  to  by 
such  merchant,  person,  or  the  head  of  such  firm,  company,  or  corpora- 
tion, in  which  he  shall  state  that  he  has  not  reduced  his  stock  for  the 
purpose  of  escaping  taxation  at  any  time,  and  has  fully,  truly,  and  cor- 
rectly, without  evasion  or  reservation,  made  return  as  required  by  law; 
and  said  average  amount  of  stock  as  sworn  to  by  said  merchant,  per- 
son, firm,  company,  or  corporation  shall  be  deemed  the  taxable  value  of 
the  capital  of  such  merchant,  person,  firm,  company,  or  corporation, 
upon  which  he  shall  pay  to  the  county  court  clerk  the  same  tax  as  lev- 
ied upon  real  estate  and  other  property  for  state,  county,  and  municipal 
purposes.      The  word  "  capital,"  as  used  in  this  subdivision,  shall  be 
construed  so  as  to  mean  the  average  amount  of  stock  on  hand  during 
the  year  in  which  it  is  offered  for  sale,  the  amount  to  be  ascertained 
as  provided  in  this  section;   but  if  the  average  stock  on  hand  is  less 

67 


COMMITTEE  ox  TAXATION. 

than  the  capital  stock  employed  by  said  merchant,  firm,  or  corporation, 
he  shall  pay  a  tax  on  the  capital  stock. 

(.4)  All  capital  employed  during  the  preceding  twelve  months  in  any 
manner  of  trading  in  which  there  is  no  stock  of  goods,  wares,  and  mer- 
chandise kept  on  hand  for  sale  and  the  aggregate  capital  reported 
shall  be  deemed  the  taxable  capital  of  such  merchant  or  factor,  upon 
which  he  shall  pay  the  same  tax  as  levied  upon  real  estate  and  other 
property  for  state,  county,  and  municipal  purposes;  and  the  report 
herein  required  shall  be  sworn  to  by  such  merchant  or  person  or  the 
head  of  such  copartnership,  mercantile  firm,  company,  or  corporation. 

The  person,  firm,  company,  or  corporation  engaged  in  such  business 
shall,  at  the  expiration  of  the  period  covered  by  the  bond  provided  for 
in  this  act,  file  with  the  clerk  of  the  county  court  a  statement,  giving 
the  aggregate  amount  of  capital  employed  during  such  period,  verified 
by  an  oath  that  said  statement,  without  evasion  or  reservation,  cor- 
rectly, fully,  and  truly  shows  the  aggregate  amount  of  capital  of  every 
kind  and  character  employed  during  such  period,  which  shall  be  for- 
warded to  the  commission  by  such  clerk  for  approval,  and  pending 
which  approval  said  tax  shall  not  be  collected. 

(5)  If,  in  any  case,  the  statements  required  herein  to  be  made  to 
the  clerk  of  the  county  court  should  for  any  reason  be  considered  as 
unjust,  incorrect,  or  inadequate,  either  by  the  clerk  of  the  county  court 
or  his  deputy,  or  by  the  district  attorney,  or  by  the  commission, 
it  shall  be  the  duty  of  such  clerk  or  his  deputy,  on  his  own  mo- 
tion or  by  direction  of  such  district  attorney  or  the  commission,  to  issue 
a  citation  to  the  person,  firm,  company,  or  corporation  returning  the 
statement  to  appear  before  such  clerk  on  a  day  not  less  than  five  days 
from  the  date  of  the  issuance  of  the  citation  and  show  cause  why  such 
statement  shall  not  be  revised  and  corrected.  The  clerk  of  the  county 
court  and  his  deputy  shall,  in  the  premises,  have  full  power  and  author- 
ity to  issue  subpoenas,  to  send  for  and  examine  witnesses,  to  administer 
oaths,  to  send  for  and  examine  books;  and  it  shall  be  the  duty  of  the 
clerk  upon  such  investigation  to  correct,  revise,  and  audit  such  state- 
ment and  fix  the  amount  of  taxes  for  which  the  party  or  parties  may  be 
liable.  It  shall  be  the  duty  of  such  clerk  also  in  such  cases  to  inquire 
into  and  ascertain  the  amount  of  insurance  upon  the  property  during 
the  time  covered  by  said  bond. 

SECTION  27.   Be  it  further  enacted,  That — 

(1)  No  merchant,  firm,  company,  copartnership,  corporation,  agent, 
or  trader  shall  commence  or  continue  a  business  declared  to  be  a  privi- 
lege under  this  act  or  revenue  act  in  any  county  of  this  state  without 
obtaining  license  from  the  clerk  of  the  county  court  of  such  county  in 
accordance  with  the  previous  provisions  of  this  act;  and  every  person, 
individual,  or  member  of  any  copartnership  or  corporation  so  offend- 
ing shall  be  subject  to  prosecution  for  each  day's  violation  of  this  law, 
and,  on  conviction,  shall  be  fined  not  less  than  ten  dollars  for  each  of- 
fense. 

(2)  Said  license  is  hereby  required  to  show  all  the  state  and  county 
revenue  paid,  the  name  or  names  of  the  party  or  firm  or  corporation  or 
company. 

(3)  Said  license  is  further  required  to  be  registered  in  the  office  of 
the  clerk  of  the  circuit  court  in  a  book  kept  by  him  for  that  purpose, 
showing  in  full  the  date  of  issuance,  name  or  names  of  the  party  or 
parties  to  whom  issued,  the  character  of  the  business,  and  the  amount 
of  state  and  county  tax  paid,  and  to  be  countersigned  by  the  clerk  of 
the  circuit  court  or  his  deputy,  which  countersigning  shall  be  after  the 
license  is  issued  by  the  county  court  clerk. 

68 


Co.M.MlTTKK    ON    TAXATION. 

(4)  For  registering  and  countersigning  said  license  and  for  making 
a  quarterly  report  of  the  same  to  the  state  comptroller  and  chairman 
of  the  county  court,  to  be  accompanied  with  his  revenue  reports,  the 
clerk  of  the  circuit  court  shall  receive  the  sum  of  fifty  cents  for  each 
license,  to  be  paid  by  the  party  or  parties  to  whom  said  license  is  is- 
sued. 

(5)  Said  license  shall  not  be  considered  valid,  nor  shall  it  be  deliv- 
ered by  the  county  court  clerk,  until  the  provisions  of  this  act  have 
been  complied  with;  and  each  violation  of  the  provisions  of  this  act  on 
the  part  of  the  county  or  circuit  court  clerk  is  hereby  declared  a  mis- 
demeanor. 

(6)  It  is  also  declared  a  misdemeanor  for  any  person,  except  the 
circuit  court  clerk  or  his  legally  qualified  deputy,  to  sign  the  name  of 
the  circuit  court  clerk  to  said  license;  and,  upon  conviction,  the  offender 
shall  be  fined  not  less  than  ten  dollars  nor  more  than  twenty-five  dol- 
lars for  each  offense. 

(7)  Every  merchant,  firm,  company,  person,  corporation,  agent,  or 
trader  applying  for  license  shall,  before  receiving  the  same,  execute  a 
bond  to  the  state,  with  good  security,  to  be  approved  by  the  clerk  of  the 
county  court,  in  the  sum  of  five  hundred  dollars,  conditioned  that  said 
merchant,  firm,  company,  person,  corporation,  agent,  or  trader  will  ren- 
der to  the  clerk  issuing  the  license,  at  the  end  of  twelve  months  from 
date  of  the  bond  (or  if  the  merchant  ceases  to  do  business  before  the 
expiration  of  the  twelve  months,  then  as  soon  as  he  ceases  to  do  busi- 
ness), a  true  statement  under  oath  as  prescribed  by  this  act,  and  will 
pay  all  taxes,  fines,  and  penalties  provided  by  law;  provided,  that  five 
days  before  the  expiration  of  said  bond  the  clerk  shall  give  the  party, 
parties,  firm,  corporation,  agents,  or  trader  notice  of  the  date  of  expi- 
ration. 

(8)  For  taking  the  bond  and  issuing  the  license  and  recording  the 
same  and  all  other  work  connected  therewith  the  clerk  shall  be  entitled 
to  one  dollar,  to  be  paid  at  the  time  of  issuance. 

(9)  Any   merchant,   person,   firm,   company,   corporation,   agent,    or 
trader  continuing  in  business  shall  renew  his  license  annually. 

(10)  No   license  shall  authorize  merchandising  out  of  the   county 
where  issued,  nor  for  a  period  longer  than  for  one  year,  nor  for  a 
shorter  period  than  three  months. 

(11)  It  shall  be  lawful  for  clerks  of  the  various  county  courts  in  the 
state  to  issue  license  by  the  quarter  for  the  exercise  of  any  privilege 
under  the  laws  of  this  state. 

(12)  But  should  any  person,  firm,  corporation,  agent,  or  trader,  hav- 
ing paid  in  advance  for  such  license,  sell,  transfer,  or  dispose  of  such 
business  before  the  expiration  of  such  license,  the  license  shall  be  trans- 
ferable, and  the  person  purchasing  shall  have  full  authority  to  continue 
said  business  until  the  expiration  of  said  license;   provided,  the  same 
bond  shall  be  given  as  hereinbefore  required  in  subdivision  7  of  this 
section  to  account  for  his  proportion  of  the  ad  valorem  tax. 

(13)  No  person,  firm,  company,  copartnership,  corporation,  agent,  or 
trader  exercising  a  taxable  business  where  the  stock  of  goods,  wares, 
and  merchandise  is  carried  shall  sell  or  transfer  said  business  as  an 
entirety  until  all  state  and  municipal  and  county  taxes  due  thereon  shall 
be  first  paid;  and  in  case  any  person,  firm,  company,  copartnership,  cor- 
poration, agent,  or  trader  exercising  such  business  shall  make  an  as- 
signment, general  or  partial,  for  the  benefit  of  creditors,  it  shall  be  the 
duty  of  the  assignee  first  to  pay  in  full  out  of  the  first  assets  that  come 
into  his  hands  all  taxes  that  may  be  due  upon  such  business,  which 
shall  be  a  prior  lien  in  preference  to  all  other  claims. 

69 


COMMITTEE  ON  TAXATION. 

SECTION  28.   Be  it  further  enacted,  That — 

(1)  The  county  court  clerks  are  hereby  required  to  turn  over  to  the 
county  attorney,  or  if  no  county  attorney,  then  to  an  attorney  to  be 
selected  by  the  county  judge  or  chairman  of  the  county  court,  all  privi- 
lege and  license  bonds  due  and  unpaid  within  thirty  days  after  said 
bonds  become  due  and  payable,  taking  duplicate  receipts  for  the  same, 
specifying  the  amount  due  thereon  as  nearly  as  can  be  ascertained,  one 
of  which  receipts  shall  be  forwarded  to  the  comptroller  of  the  state 
and  the  other  spread  on  record  in  the  county  court. 

(2)  Whereupon  the  said  attorney  or  clerk  of  the  county  court  shall 
forthwith  give  five  days'  notice  to  the  principal  and  surety  on  such 
bonds  to  appear  before  the  chairman  or  judge  of  the  county  court  in 
which  such  bond  is  due  and  show  cause,  if  they  have  any,  why  judg- 
ment should  not  be  rendered  against  them  for  the  amount  of  revenue 
due  on  such  bonds,  which  judgment  shall  in  no  case  be  less  than  the 
amount  of  the  ad  valorem  and  privilege  tax  fixed  by  law  and  by  the 
county  court,  with  six  per  centum  interest  and  a  penalty  of  one  per 
centum  for  each  day  such  revenue  is  delinquent  after  thirty  days  from 
the  date  of  said  notice,  and  an  attorney's  fee  of  five  dollars  on  each  bond. 

(3)  Jurisdiction  is  hereby  conferred  on  the  county  courts  of  this 
state  to  try  and  determine  such  cases,  to  render  judgment,  issue  exe- 
cution, and  do  all  things  necessary  to  enforce  the  collection  of  this  rev- 
enue and  necessary  to  the  enforcement  of  this  act. 

(4)  The  notice  so  given  may  be  returnable  to  any  Monday  of  said 
county  court  to  the  judge  or  chairman  thereof,  provided  that  five  days' 
notice  is  given,  when  the  judge  or  chairman  shall  try  the  matter. 

(5)  Upon  failure  of  the  principal  or  security  to  appear,  the  attorney 
or  clerk  shall  move  for  judgment;  and  the  chairman  or  judge  shall  ren- 
der and  have  entered  a  judgment  for  the  amount  of  said  taxes,  interest, 
penalties,  as  aforesaid,  with  costs. 

(6)  The  said  clerk  shall  be  allowed  the  usual  fees  for  such  services 
as  in  the  circuit  courts  of  the  state. 

(7)  The  state,  county,  and  municipality  shall  in  no  event  pay  any 
cost  in  these  proceedings,  but  the  same  shall  be  taxed  against  delin- 
quents. 

(8)  Such  suits  shall  not  interfere  with  the  right  of  the  clerk  at  any 
time  to  issue  a  distress  warrant  to  collect  such  taxes,  if  in  his  judg- 
ment property  can  be  found  on  which  to  levy  same. 

SECTION  29.  Be  it  further  enacted,  That  the  clerks  of  the  county 
courts  of  the  several  counties  of  this  state  shall  collect  all  taxes  on 
merchants,  persons,  companies,  firms;  corporations,  agents,  or  traders, 
and  all  privileges  as  now  provided  by  law,  and  shall  be  subject  to  all 
the  fines  and  penalties  for  failure  to  pay  such  taxes  over  to  the  comp- 
troller, county  trustee,  and  municipal  authorities  that  are  provided  for 
in  this  act  in  cases  of  trustees. 

SECTION  30.  Be  it  further  enacted.  That  any  property  or  properties 
included  in  this  act  shall  be  back  assessed  or  reassessed  for  the  period 
now  provided  by  law — viz.: 

(1)  When  the  same  have  been  omitted  or  escaped  taxation. 

(2)  But  in  no  case  shall  the  back  assessment  or  reassessment  of  real 
estate  constitute  a  lien  on  the  real  estate  which  has  by  bona  fide  sale 
passed  into  the  hands  of  innocent  purchasers,  but  shall  be  a  liability 
against  the  person  owning  same  at  the  time  of  the  inadequate  assess- 
ment; provided,  however,  the  burden  of  proving  a  bona  fide  sale  shall 
be  upon  the  person  owning  such  real  estate  at  the  time  of  such  back 
assessment  or  reassessment;  provided,  this  shall  not  apply  to  property 
that  has  wholly  escaped  taxation. 

70 


COMMITTEE  ox  TAXATION. 

(3)  When  the  owner  or  agent  has  falsely  and  knowingly  or  fraudu- 
lently scheduled  his  property  for  taxation. 

(4)  Provided,  however,  that  no  property  shall  be  back  assessed  or 
reassessed  when  the  owner  thereof  has  at  the  proper  time  required  by 
law  paid  the  taxes  as  assessed  against  said  property  and  received  a 
proper  receipt  therefor;  but  all  property  covered  by  this  rfbt  shall  be 
subject  to  reassessment  and  back  assessment,  as  herein  provided,  in  the 
manner  hereinafter  provided,  at  any  time  before  the  owner  thereof  has 
paid  all  taxes,  interest,  penalties,  and  dues  thereon;  and  the  owner  of 
said  property  may  prevent  a  back  assessment  or  reassessment  of  his 
property  by  paying  all  taxes,  interest,-  and  penalties,  as  provided  by 
law,  up  to  and  before  any  notice  is  served  on  him  of  a  motion  or  pro- 
ceeding to  reassess  or  back  assess  said  property. 

(5)  Whenever  it  is  within  his  knowledge  or  he  has  reason  to  suspect 
in  his  county  that  any  property  has,  in  violation  of  the  foregoing  sub- 
divisions of  this  section,  as  above  described,  been  assessed  by  any  as- 
sessor or  computed  by  any  board  of  equalization  at  less  than  its  actual 
cash  value,  it  shall  become  the  duty  of  the  revenue  collector,  of  any 
district  attorney,  of  any  attorney  of  the  county,  of  the  county  judge  or 
chairman  of  the  county  court,  of  the  county  court  clerk,  of  any  circuit, 
chancery,  or  criminal  court  clerk,  of  any  sheriff,  of  any  assessor,  and 
of  any  citizen  of  the  county  to  cause  or  have  the  county  court  clerk, 
in  the  case  of  merchants'  taxes,  delinquent  privilege  taxes,  and  the 
county  trustee  in  case  of  other  taxes  covered  by  this  act,  to  have  issued 
the  citation  hereinafter  set  out  for  the  purpose  of  back  assessing  or  re- 
assessing such  property.     At  the  request  of  or  upon  the  information  or 
motion  of  any  citizen  or  taxpayer  of  the  state  or  of  any  of  the  officers 
above  named,  it  shall  be  the  duty  of  the  county  court  clerk,  in  case  of 
merchants'  taxes  and  delinquent  privilege  taxes,  and  the  trustee  in  the 
case  of  other  taxes  covered  by  this  act,  to  issue,  for  the  purpose  of  back 
assessing  or  reassessing  property,  the  citation  hereafter  set  out.    The 
county  court  clerk,  in  case  of  merchants'  taxes  and  delinquent  privilege 
taxes,  and  the  trustee  in  case  of  other  taxes  covered  by  this  act,  upon 
the  motion  or  information  or  at  the  request  of  any  citizen  or  taxpayer 
of  the  state  or  of  any  of  the  officials  before  designated,  or  when  the 
same  is  within  the  knowledge  of  or  suspected  by  the  county  court  clerk 
or  trustee,  shall  issue,  as  to  any  property  assessed  or  valued  in  viola- 
tion of  this  act  at  less  than  the  actual  cash  value  of  the  same,  a  cita- 
tion to  be  served  by  any  officer  of  the  county  or  any  district  thereof 
upon  the  owner  of  the  property  or  his  agent  or  representative  or  attor- 
ney, summoning  him  to  appear  before  such  clerk  or  trustee  at  his  office, 
giving  not  less  than  five  days'  notice  from  the  date  of  the  issuance  of 
the  citation,  and  show  cause,  if  any,  why  said  property  should  not  be 
back  assessed  or  reassessed  at  its  actual  cash  value.     The  form  of  cita- 
tion shall  be  substantially  as  follows: 

"  State  of  Tennessee,  —  —  County. 

"To  -  — ,  at  -  — ,  Tennessee: 

"  Proper  motion  having  been  made  before  me  by  - 

or  —  — ,  revenue  collector  for  the  state  under  section , 

chapter ,  of  the  Acts  of  Tennessee,  19 ,  you  are  hereby  cited  to 

appear  before  -  — ,  trustee,  or  county  court  clerk, 

-  County,  Tennessee,  at  my  office  in  the  courthouse  in 

— ,  Tennessee,  on  the  -  -  day  of  -  — , 

19 ,  at  —  —  o'clock M.,  for  the  purpose  of  being  back 

assessed  or  reassessed  for  the  years  -  -  upon  omitted  or 

inadequately  assessed  property  in  the  said  county  and  state,  and  show 
cause,  if  you  have  any,  why  said  property  should  not  be  back  assessed 
or  reassessed  at  its  actual  cash  value. 

71 


COMMITTEE  ox  TAXATION. 

"  Trustee  or  County  Court  Clerk,  -                       -  County,  Tennessee. 
"  Issued  at  office,  this  —  —  day  of  —  — ,  19 ." 

(6)  The  officials  herein  named  as  having  power  to  back  assess  or  re- 
assess property  are  vested  with  full  authority  to  administer  oaths,  send 
for  and  examine  witnesses,  and  take  such  steps  as  may  be  deemed  neces- 
sary or  material  to  obtain  information  and  evidence  as  to  the  value  of 
the  property.     Said  witnesses,  when  properly  summoned,  shall  be  amen- 
able to  existing  laws  for  nonattendance  or  failure  to  give   evidence 
which   is   in   their  knowledge.     Said   officials   herein   vested   with   the 
power  to  back  assess  or  reassess  property  shall  have  full  authority  in 
proceedings  to  back  assess  or  reassess  such  property,  to  make  proper, 
correct,  and  adequate  assessment  of  the  same  at  its  actual  cash  value, 
which,  when  entered  upon  the  tax  book  or  filed  in  writing  with  the 
authorized  collecting  authority,  shall  become  a  final  and  valid  assess- 
ment of  the  property  and  collectable  as  such  as  fully  and  amply  as  if 
originally  entered  upon  the  assessment  roll;  and  said  assessment,  when 
made  by  said  official  authorized  to  make  same,  shall  have  the  force  and 
effect  of  a  judgment  against  the  person  liable  for  the  taxes  for  the  year 
for  which  said  assessment  is  made.     Should  it  appear  that  any  property 
has  been  assessed  at  less  than  its  actual  cash  value  in  violation  or  in 
disregard  of  the  provisions  of  this  act,  the  official  back  assessing  or  re- 
assessing the  same  shall  add  to  the  assessment  a  penalty  of  fifteen  per 
centum  upon  the  amount  of  the  added  tax  and  the  cost  of  the  proceed- 
ing, which  said  penalty  and  costs  shall  become  a  part  of  the  taxes  and 
collectable  as  such.     There  shall  also  be  added  to  said  tax  all  penalties 
and  costs  lawfully  attaching  to  said  tax,  treating  same  as  delinquent 
from  the  date  when  said  tax  was  due  and  payable,  if  assessed  as  required 
by  law.     If  the  proceeding  is  determined  in  favor  of  the  owner  of  the 
property,  the  cost  shall  be  paid  by  the  county. 

(7)  It  shall  be  the  duty  of  the  clerks  of  the  county  courts  to  exam- 
ine and  compare  the  assessment  rolls  of  the  county  with  the  invento- 
ries or  reports  of  administrators  and  executors  as  soon  as  filed  with  the 
county  court  clerk,  for  the  purpose  of  ascertaining  whether  any  per- 
sonal property  of  any  estate  is  subject  under  this  act  to  back  assess- 
ment or  reassessment.     In  case  such  examination  shall  show  any  per- 
sonalty subject  to  such  back  assessment  or  reassessment,  the  clerk  of 
the  county  court  shall  report  the  same  to  the  county  trustee,  who  shall 
back  assess  or  reassess  the  same  under  the  provisions  of  this  act,  and 
add  thereto  the  penalty  heretofore  designated. 

(8)  In  case  the  county  court  clerk  or  county  trustee  shall  fail  or 
refuse  to  perform  the  duty  herein  imposed,  such  clerk  or  trustee  shall 
become  liable  on  his  official  bond  for  the  amount  of  taxes  which  might 
have  been  recovered  had  said  duty  been  properly  performed,  together 
with  the  penalty  of  fifteen  per  centum  added  thereto,  said  liability  and 
penalty  to  be  recovered  in  any  court  of  record  or  before  any  justice  of 
the  peace  at  the  instance  of  any  revenue  collector  or  district  attorney 
or  commission,  or  by  suit  or  by  motion  on  five  days'  notice  in  the  chan- 
cery or  circuit  court,  or  before  any  justice  of  the  peace  of  the  county. 

(9)  Any  property  owner  dissatisfied  with  any  assessment  or  back 
assessment  made  by  any  trustee  or  county  court  clerk  under  the  provi- 
sions of  this  section  may  appeal  directly  to  the  commission,  and,  upon 
said  appeal,  the  said  commission  shall  have  the  same  jurisdiction  to 
hear  and  determine  said  cause  as  if  the  case  had  been  brought  before 
saki  commission  originally  as  herein  provided. 

SECTION  31.  Be  it  further  enacted,  That  the  assessed  taxes  on  all  real 
estate,  personalty,  railroad,  telegraph,  and  telephone  companies,  and  all 
damages  and  costs  accruing  thereon,  shall  be  and  remain  a  first  lien 

72 


COMMITTEE  ox  TAXATION. 

upon  such  property  from  the  tenth  day  of  January  of  each  and  every 
year  for  the  taxes  of  that  year;  and  said  taxes  shall  be  a  lien  upon  the 
fee  in  said  property,  and  not  merely  upon  the  interest  of  the  person  to 
whom  said  property  is  or  ought  to  be  assessed,  but  to  any  and  all  other 
interests  in  said  property,  whether  in  reversion  or  remainder  or  of  lien- 
ors,  or  of  any  nature  whatever;  and  the  whole  proceeding  for  collection 
of  taxes  from  the  assessment  to  sale  for  delinquency  shall  be  a  proceed- 
ing in  rem,  and  shall  not  be  invalid  on  account  of  such  land  having  been 
listed  or  assessed  for  taxation  to  any  one  as  owner  or  owners  or  to  any 
person  or  persons  not  the  owner  or  owners  or  to  unknown  owner  or 
owners;  provided,  however,  that  where  there  is  assessable  under  this 
act  a  leasehold  interest  in  real  estate  or  any  improvements  on  real  es- 
tate, which  said  real  estate  is  exempt  from  taxation  in  the  hands  of 
and  to  the  owner  thereof,  the  taxes  assessed  against  such  leasehold  in- 
terest or  interest  in  improvements  on  such  exempt  real  estate  shall  be 
a  lien  only  upon  such  leasehold  interest  or  interest  in  improvements, 
and  not  upon  the  interest  of  the  owner  of  the  fee  or  the  remainder  or 
reversion  of  the  fee. 

SECTION  32.   Be  it  further  enacted,  That — 

(1)  The  commission,  from  ten  names  each  submitted  by  each  county 
judge  or  chairman  of  a  county  court  and  by  the  mayor  of  the  largest 
municipality  within  each  county,  where  there  is  such  municipality,  or  of 
its  own  selection,  provided  no  list  is  furnished,  shall  appoint  in  each 
county  three  freeholders  and  taxpayers,  each  of  whom  shall  have  been 
a  citizen  of  the  county  for  not  less  than  six  years — provided,  that  jus- 
tices of  the  peace  or  other  county  or  city  officers  shall  be  ineligible  to 
appointment  on  said  board — who  shall  constitute  a  board  of  equaliza- 
tion invested  with  the  powers  and  duties  of  equalizing  assessments  and 
computing  values  for  taxation  as  hereafter  prescribed. 

(2)  Said  county  board  of  equalization  shall,  the  first  Monday  in  Sep- 
tember of  each  year,  meet  and  sit  in  regular  session  as  necessity  may 
require  until  the  equalization  has  been  completed,  but  not  to  sit  longer 
than  six  days  in  counties  having  a  population  of  10,000  or  under  by  the 
federal  census  of  1910  or  any  subsequent  federal  census,  and  ten  days 
in  counties  having  a  population  of  over  10,000  and  under  20,000  by  the 
federal  census  of  1910  or  any  subsequent  federal  census,  and  fifteen 
days  in  counties  having  a  population  of  over  20,000  and  under  35,000, 
and  twenty-five  days  in  counties  having  a  population  of  over  35,000,  the 
last  federal  census  to  govern;  but  the  commission  may  extend  the  time 
if  in  its  judgment  the  public  welfare  shall  require  it,  but  not  beyond 
the  time  hereinafter  provided  for  a  return  of  assessment  to  the  com- 
mission. 

(3)  Each  board  of  equalization  shall  elect  one  of  its  members  chair- 
man  and  one   secretary   of  the  board,   and   a  majority   of  the   board 
shall  constitute  a  quorum  for  the  transaction  of  business.     Said  board 
shall  keep  a  daily  record  of  its  transactions  and  sign  the  same,  and  its 
members  shall  be  paid  by  the  county  a  compensation  for  their  services 
not  to  exceed  five  dollars  per  day. 

(4)  The  assessor  shall,  at  the  first  day's  session  of  the  board,  deliver 
the  county  assessment  lists  or  rolls  to  said  board  for  its  consideration. 

(5)  Upon  the  completion  of  the  duties  of  the  board,  the  records  and 
papers  of  the  board  shall  be  turned  over  by  the  board  to  the  assessor 
of  the  county  for  preservation,  together  with  the  assessment  lists. 

(6)  It  shall  be  the  duty  of  the  board  of  equalization  in  each  county 
carefully  to  examine,  compare,  and  equalize  the  county  assessments; 
to  eliminate  from  its  lists  property  exempt  from  taxation;  to  hear  any 
just  Complaints  of  any  party  or  parties  feeling  aggrieved  on  account 

73 


COMMITTEE  ox  TAXATION. 

of  excessive  assessment  of  property,  and  if,  in  their  judgment,  the  prop- 
erty is  assessed  at  more  than  its  actual  cash  value,  it  shall  be  reduced 
to  the  actual  cash  value  of  the  same;  to  correct  any  and  all  errors 
arising  from  clerical  mistakes  or  otherwise  that  may  come  or  be 
brought  to  the  attention  of  the  board,  and  the  corrections  made,  if  any, 
shall  be  entered  upon  the  assessment  books,  without  in  any  way  alter- 
ing the  assessment  lists.  Said  board  shall  have  the  power,  and  it  is 
hereby  made  its  duty,  to  increase  or  lower  the  entire  assessment  roll  or 
any  assessment  contained  therein  so  as  to  equalize  the  assessment  of 
all  property  contained  therein,  and  make  such  assessment  conform  to 
the  actual  cash  value  of  the  property  described  in  the  assessment.  If 
the  property  described  in  said  assessment  lists,  or  any  part  thereof, 
shall  have  been  assessed  at  less  than  the  actual  cash  value  thereof,  the 
value  of  the  same  shall  be  increased  so  as  to  conform  to  the  actual  cash 
value  thereof;  or  if  any  property  designated  in  said  assessment  lists 
shall  have  been  assessed  at  more  than  the  actual  cash  value  thereof, 
the  same  shall  be  reduced  so  as  to  conform  to  the  actual  cash  value 
thereof,  it  being  the  intention  of  this  act  that  the  board  of  equalization 
shall  equalize  and  compute  the  value  of  all  the  property  in  the  county 
upon  the  standard  of  the  actual  cash  value  thereof. 

(7)  No  assessment  shall  be  increased  by  the  board  of  equalization 
until  the  property  owner  or  owners  affected  by  said  increase  shall  have 
been  notified  and  given  an  opportunity  to  be  heard  either  by  letter  or 
publication  in  a  newspaper  published  in  the  county. 

(8)  The  board 'may  examine  any  person  or  persons  as  witnesses, 
and  hear  any  proof  that  may  be  offered  by  any  taxpayer  in  or  about 
any  question  touching  the  value  of  any  property  or  of  property  de- 
scribed in  the  assessment  roll.     Said  board  shall  have  the  power  and 
authority  to  send  for  persons  and  papers,  to  examine  and  enforce  the 
attendance  of  witnesses,  and  obtain  any  evidence  or  information  that 
may  be  deemed  material  in  the  performance  of  its  duties.     Each  mem- 
ber of  the  board  shall  have  the  power  to  administer  an  oath,  and  any 
person  who  shall  wilfully  or  corruptly  swear  falsely  to  any  material 
fact  before  said  board  shall  be  guilty  of  perjury  and  indictable  for  such 
offense. 

(9)  Any  owner  of  property  liable  for  taxation  in  the  state  shall  have 
the  right,  in  person  or  by  his  agent,  to  make  complaint  before  said 
board  that  other  property  or  properties  in  the  county  have  been  as- 
sessed at  less  than  the  actual  cash  value  thereof.     Upon  such  complaint 
being  made  before  the  board,  it  may  hear  any  evidence  or  witness  of- 
fered by  the  complainant,  or  may  take  such  steps  as  it  may  deem  ma- 
terial to  the  investigation  of  the  complaint,  and  pass  upon  the  question 
justly  and  equitably  according  to  the  standard  herein  established  of  an 
actual  cash  valuation  of  property.     The  board  may  inquire  as  to  the 
valuation  of  the  various  classes  of  property  in  the  respective  districts 
and  wards  of  the  county,  and  make  such  changes  by  way  of  increase 
or  decrease  in  the  valuation  as  may  be  necessary  to  equalize  the  same 
as  between  the  districts  and   wards,  and  to  determine   the   rate  per 
centum  of  increase  or  decrease  to  be  added  or  deducted  in  order  to  make 
a  just  and  equitable  equalization  in  the  respective  districts  and  wards, 
so  as  to  conform  throughout  the  county  to  a  just  and  equitable  stand- 
ard, which  standard  in  such  case  shall  not  be  less  than  the  actual  cash 
value  of  the  property. 

(10)  The  board  of  equalization  shall  make  out  and  transmit  to  the 
commission  a  summary,  showing  the  number  and  value  of  acres  as- 
sessed, the  number  and  value  of  town  lots  and  improvements  thereon, 
the  value  of  personal  property  (both  tangible  and  intangible)  assessed, 
the  number  of  polls  assessed,  and  also  a  brief  summary  of  all  the  testi- 

74 


COMMITTEE  ox  TAXATION. 

mony  taken  before  the  board  in  regard  to  the  equalization  of  property 
or  such  matter  as  the  commission  may  require. 

(11)  It  shall  be  the  duty  of  the  said  board  to  bring  before  it  the  as- 
sessor and  each  deputy  of  the  county  and  propound  to  them  such  ques- 
tions as  are  in  the  opinion  of  the  board  proper  to  ascertain  the  manner 
in  which  assessors  arrived  at  the  value  of  the  property  assessed  by 
them,  and  such  questions  as  will  aid  said  board  in  the  equalization  of 
values. 

(12)  When  the  board  of  equalization  shall  have  determined  the  mat- 
ters of  equalization  and  values  before  it:  and  within  its  jurisdiction, 
such  action  shall  be  final,  except  in  so  far  as  the  same  may  be  revised 
or  changed  by  the  commission. 

(13)  Upon  returning  the  assessment  rolls  of  the  county  to  the  as- 
sessor, the  said  board  of  equalization  shall  append  to  or  indorse  upon 
the  same  a  certificate  signed  by  each  member — viz.: 

"  We,  the  undersigned  members  of  the  board  of  equalization  of  the 
county  of  —  — ,  do  hereby  officially  certify  that  we  have 

equalized,  computed,  and  fixed  the  values  of  all  properties  set  out  in  the 
assessment  rolls  of  said  county  upon  the  standard  of  the  actual  cash 
value  of  the  same  by  raising  the  values  of  all  properties  assessed  at  less 
than  the  actual  cash  value  thereof  to  the  actual  cash  value  of  the  same, 
or  by  reducing  the  values  of  all  properties  assessed  at  a  greater  than 
the  actual  cash  value  thereof  to  the  actual  cash  value  of  the  same,  and 
otherwise  faithfully  and  honestly  obeyed  the  requirements  of  the  as- 
sessment laws  of  the  state  and  kept  our  oaths  of  office. 

"  Witness  our  hands,  this  —  —  day  of  -  ." 

(14)  Each  member  of  the  county  board  of  equalization,  before  enter- 
ing upon  the  discharge  of  the  duties  of  his  office,  shall,  before  the  judge 
or  chairman  of  the  county  court,  take  and  subscribe  to  the  following 
oath,  to  be  filed  with  the  clerk  of  the  county  court — viz. : 

"  State  of  Tennessee,  —  —  County. 

"  I,  —  — ,  member  of  the  board  of  equalization  of  said 

county,  do  hereby  solemnly  swear  (or  affirm)  that  I  will,  without  fear, 
favor,  or  affection,  perform  the  duties  required  of  me  by  my  oath  of 
office  and  the  laws  of  the  state;  that  I  will  carefully  examine,  compare, 
and  equalize  all  assessment  lists  and  values  of  property  in  said  county 
designated  in  the  assessment  rolls,  and  equalize,  fix,  and  compute  the 
value  of  all  such  properties  upon  the  standard  of  an  actual  cash  valu- 
ation, as  directed  by  the  laws  of  the  state,  by  raising  the  value  of  all 
properties  assessed  at  less  than  the  actual  cash  value  of  the  same  to 
the  actual  cash  value  thereof,  and  by  reducing  the  values  of  all  proper- 
ties assessed  at  greater  than  the  actual  cash  value  of  the  same  to  the 
actual  cash  value  thereof,  and  in  all  respects  faithfully,  honestly,  and 
impartially  do  and  perform  each  and  every  duty  imposed  upon  me  as 
a  member  of  said  board  by  the  laws  of  the  state. 

"  Sworn  to  before  me  this,  the  —  —  day  of  -  — ." 

(15)  On  request  of  the  commission,  the  clerk  of  the  county  court 
shall  make  certified  copies  of  said  oaths  and  forward  to  it  the  same. 

(16)  It  shall  be  unlawful  for  any  member  of  a  board  of  equalization 
to  enter  upon  or  undertake  to  discharge  the  duties  of  his  office  without 
having  taken  the  oath  hereinbefore  provided. 

(17)  It  shall  be  unlawful  for  any  board  of  equalization,  or  any  mem- 
ber thereof,  to  fail,  refuse,  or  neglect  to  prepare  and  promptly  forward 
to  the  commission  a  comparative  tabulated  statement  (or  certified  copy 
thereof),  to  be  taken  from  the  assessment  list  as  hereinbefore  provided. 

(18)  It  shall  be  the  duty  of  the  members  of  the  board  of  equaliza- 
tion, when  it  is  known  to  or  reasonably  suspected  by  any  one  of  them 
that  any  assessor  or  deputy  has  knowingly,  wilfully,  or  negligently  as- 


COMMITTEE  ON  TAXATION. 

sessed  any  property  at  less  than  the  actual  cash  value  of  same,  to  re- 
port the  same  to  the  district  attorney  and  commission,  whose  duty  it 
shall  be,  upon  receiving  such  information,  to  institute  proceedings 
against  the  assessor  upon  his  bond  to  recover  the  penalty  hereinafter 
prescribed. 

(19)  It  is  hereby  declared  unlawful  for  any  board  of  equalization, 
or  any  member  thereof,  wilfully,  knowingly,  or  negligently  to  compute, 
fix,  or  equalize  the  value  of  any  property  at  less  than  its  actual  cash 
value. 

(20)  If  in  equalizing  the  properties  it  shall  come  to  the  knowledge 
of  the  commission,  or  should  it  have  reasonable  grounds  to  believe  such 
is  the  case,  that  any  board  of  equalization,  or  any  member  thereof,  has 
violated  this  provision,  it  shall  be  the  duty  of  said  commission  imme- 
diately to  notify  the  district  attorney  of  the  district  in  which  the  of- 
fense is  committed  to  institute  proceedings  to  recover  the  penalty  here- 
inafter prescribed,  which  said  direction  shall  be  complied  with  by  such 
district  attorney. 

(21)  It  shall  be  the  duty  of  the  board  of  equalization  to  investigate 
as  to  whether  assessors  or  deputies  have  made  and  transmitted  to  the 
district  attorney  a  list  of  the  taxpayers  who  have  failed  or  refused  to 
take  the  oath  or  affirmation  required  by  law  to  tax  schedules,  or  who 
have  refused,  neglected,  or  failed  to  return  tax  schedules  as  required 
by  law;  and  if  the  assessor  has  failed  to  perform  this  duty,  then  said 
board  shall  report  the  same  to  the  district  attorney  and  to  the  commis- 
sion, whose  duty  it  shall  then  be  to  institute  proceedings  against  the 
assessor  for  the  penalty  herein  prescribed;  and,  in  case  of  such  a  fail- 
ure on  the  part  of  the  assessor,  it  shall  be  the  duty  of  the  commission  to 
prepare  and  transmit  to  the  district  attorney  a  list  of  the  taxpayers 
who  shall  have  failed  to  perform  the  requirements  of  this  act  hereinbe- 
fore set  out,  and  thereupon  such  district  attorney  shall  ex  officio  prose- 
cute the  delinquents;  and  it  shall  be  unlawful  for  the  board  of  equali- 
zation and  the  members  thereof  to  fail,  refuse,  or  neglect  to  perform 
this  duty  before  the  completion  of  their  duties  of  equalization. 

(22)  It  shall  be  unlawful  for  the  members  of  any  board  of  equaliza- 
tion to  fail,  refuse,  or  neglect  to  report  and  transmit  to  a  district  at- 
torney and  to  the  commission  such  answers  of  assessors  or  deputy  as- 
sessors, elsewhere  required  in  this  act,  as  show  or  indicate  they  have 
assessed  any  property  at  less  than  the  actual  cash  value  of  the  same. 

(23)  It  shall  be  unlawful  and  a  misdemeanor  for  any  judge  or  chair- 
man of  the  county  court  or  clerk  of  the  county  court  or  county  regis- 
ter to  fail,  refuse,  or  neglect  to  do  and  perform  any  duty  imposed  by 
this  act  with  regard  to  returning  or  forwarding  statements  to  the  com- 
mission as  provided  for  in  this  act,  and,  upon  conviction,  the  offender 
shall  be  fined  not  less  than  fifty  dollars  and  not  more  than  one  hundred 
dollars. 

(24)  The  books  prepared  for  the  use  of  the  assessor  shall  have  two 
additional  columns  after  the  total  valuation  column  for  the  purpose  of 
showing  the  action,  if  any,  of  the  board  of  equalization  on  assessments, 
one  of  which  shall  show  the  increase  and  the  other  the  decrease  in  val- 
uation made  by  said  board.     These  two  columns  shall  be  added  to  get 
the  total  increase  and  decrease  in  the  district. 

(25)  The  assessor  shall,  within  ten  days  after  the  board  of  equaliza- 
tion adjourns,  make  out  a  tabulated  statement  by  districts  and  wards, 
showing  the  number  of  acres  assessed  and  value,  the  number  of  lots 
assessed  and  assessed  value,  the  value  of  personalty  assessed,  the  total 
value  of  all  property,  and  the  total  increase  and  decrease  made  by  the 
board  of  equalization  in  each  district,  and  such  information  as  the  com- 

76 


COMMITTEE  ox  TAXATION. 

mission  may  require,  and  shall  forward  said  statement  to  the  commis- 
sion by  registered  mail. 

SECTION  33.   Be  it  further  enacted.  That — 

(1)  Each  assessor  or  deputy  or  member  of  a  board  of  equalization 
who  violates,  neglects,  or  fails  or  refuses  to  comply  with  any  of  the 
provisions  of  this  act,  unless  the  same  is  otherwise  expressly  made 
punishable  as  a  misdemeanor,  shall  pay  and  forfeit  to  the  State  of  Ten- 
nessee the  sum  of  not  less  than  fifty  dollars  nor  more  than  one  hundred 
dollars  for  each  offense,  which  penalty  shall  be  recovered  of  the  offender 
and  his  sureties  on  his  bond  in  the  case  of  assessors  and  deputies  and 
of  the  members  of  the  board  of  equalization  personally,  in  any  court 
of  record  in  the  county  or  before  any  justice  of  the  peace  of  the  county, 
by  motion  on  five  days'  notice  or  by  suit  instituted  for  the  purpose. 

(2)  It  shall  be  the  duty  of  each  district  attorney  and  county  judge 
or  chairman  of  the  county  court,  when  it  comes  to  his  knowledge  or 
he  has  reasonable  grounds  to  believe  that  the  provisions  of  this  act  have 
been  violated,  to  institute  proceedings  by  such  motion  or  suit  to  recover 
the  penalties  prescribed  by  this  act. 

SECTION  34.  Be  it  further  enacted.  That  it  shall  be  unlawful  for  any 
assessor  or  deputy  or  any  member  of  any  board  of  equalization  to  draw 
or  receive  any  compensation  for  services,  or  for  any  county  judge  or 
chairman  to  issue  any  warrant  for  the  same,  until  such  payment  shall 
be  approved  by  the  commission. 

SECTION  35.  Be  it  further  enacted,  That  any  judge  or  chairman  of 
a  county  court  or  clerk  of  the  county  court  or  district  attorney  who 
fails,  neglects,  or  refuses  to  obey  and  observe  the  requirements  im- 
posed upon  him  by  this  act  shall  be  guilty  of  a  misdemeanor,  and,  upon 
conviction,  shall  be  fined  not  less  than  fifty  dollars  nor  more  than  one 
hundred  dollars. 

SECTION  36.  Be  it  further  enacted,  That  the  clerk  of  each  county 
shall,  in  a  well-bound  book,  which  the  county  shall  furnish  at  its  ex- 
pense, keep  and  preserve  the  said  oaths  prescribed  by  this  act  to  be 
taken  by  assessors,  deputies,  and  members  of  boards  of  equalization,  to 
be  forwarded  to  the  commission. 

SECTION  37.  Be  it  further  enacted.  That — 

(1)  The  Governor  shall  appoint  three  tax  commissioners,  who  shall 
constitute  the  "  Tennessee  Tax  Commission,"  herein  referred  to  as  the 
commission.     One  commissioner  shall  be  appointed   from   each   grand 
division  of  the  state.     No  person  shall  be  eligible  to  the  position  of  com- 
missioner unless  he  is  thirty  years  of  age  and  a  freeholder  and  unless 
he  has  been  a  resident  of  this  state  for  five  years  next  preceding  his 
appointment. 

(2)  The  commissioners  first  appointed  shall  be  designated  by  the 
Governor  to  hold  office,  respectively,  for  terms  of  two,  four,  and  six 
years  from  April  tenth,  nineteen  hundred  and  fifteen.     The  term  of  each 
commissioner  thereafter  appointed  shall  be  for  six  years  from  the  expi- 
ration of  the  term  of  his  predecessor;  provided,  that  in  the  case  of  a 
vacancy  due  to  any  cause  other  than  the  expiration  of  a  term,  the  ap- 
pointment shall  be  for  the  unexpired  term.     Each  commissioner  shall 
continue  to  hold  office  until  his  successor  qualifies. 

(3)  The  commissioner  appointed  for  the  term  of  six  years  shall, 
during  the  full  term  of  his  appointment,  be  chairman  of  the  commis- 

77 


COMMITTEE  ox  TAXATION. 

sion,  and  thereafter  the  commission  shall  elect  one  of  the  commission- 
ers chairman. 

(4)  The  Governor  may,  for  cause,  remove  a  member  of  the  commis- 
sion.    Before  so  doing,  he  must  give  such  commissioner  a  hearing,  and, 
on  removal,  must  give  him  a  statement  in  writing  of  all  the  causes 
thereof,  and  a  copy  of  such  statement  shall  be  filed  with  the  secretary 
of  state  and  shall  be  a  public  record. 

(5)  Each  commissioner  shall  devote  his  entire  time  to  the  duties  of 
his  office,  and  shall  not  serve  on  or  under  any  committee  of  any  politi- 
cal party  or  organization. 

(6)  The  chairman  of  the  commission  shall  receive  an  annual  com- 
pensation of  forty-five  hundred  dollars,  and  each  of  the  other  two  com- 
missioners four  thousand  dollars,  payable  monthly. 

(7)  The  commission  shall  maintain  an  office  and  hold  its  regular 
sessions  in  Nashville.     At  the  first  session  of  said  commission  it  shall 
elect  a  secretary,  who  shall  receive  an  annual  compensation  of  fifteen 
hundred  dollars,  payable  monthly,  and  who  shall  hold  his  position  dur- 
ing the  pleasure  of  the  commission. 

(8)  A  majority  of  said  commission  shall  constitute  a  quorum  for  the 
transaction  of  business.     Minutes  of  each  day's  session  of  the  commis- 
sion shall  be  kept  and  signed  by  its  members.     The  records  of  the  com- 
mission shall  be  kept  by  the  secretary  for  preservation.     All  of  the 
proceedings  of  the  commission  shall  be  shown  on  its  record  of  proceed- 
ings, which  shall  be  a  public  record;  and  all  voting  shall  be  by  calling 
each  commissioner's  name  by  the  secretary,  and  each  commissioner's 
vote  shall  be  recorded  on  the  record  of  proceedings  in  each  case.     The 
commission  may  employ  a  stenographer  at  an  annual  salary  not  ex- 
ceeding nine  hundred  dollars,  payable  monthly,  and  such  other  help  as 
it  may  require  in  performing  the  duties  imposed  upon  it  by  law. 

(9)  It  shall  be  the  duty  of  the  commissioners,  before  entering  into 
the  discharge  of  their  duties  as  such,  to  take  and  subscribe  to  an  oath 
that  they  will  fairly  and  impartially  perform  the  duties  imposed  upon 
them  by  this  act,  and  equalize,  fix,  and  compute  the  values  of  all  prop- 
erties in  the  state  so  that  the  value  thereof  shall  conform  to  the  stand- 
ard of  the  actual  cash  value  of  the  same.     Said  oath  shall  be  taken 
before  some  person  authorized  by  law  to  administer  oaths,  and  be  filed 
in  the  office  of  the  secretary  of  state  for  preservation.    They  shall  also, 
before  entering  into  the  discharge  of  their  duties,  each  give  bond,  with 
two  or  more  sureties,  in  the  sum  of  ten  thousand  dollars,  payable  to 
the  State  of  Tennessee,  conditioned  upon  the  faithful  discharge  of  their 
official  duties.     Upon  taking  and  filing  said  oaths  and  giving  said  bonds, 
said  officials  shall  at  once  become  and  constitute  the  Tennessee  Tax 
Commission  as  hereby  provided,  with  the  power  and  authority  to  hold 
meetings  and  perform  the  duties  herein  conferred  upon  them  as  tax  com- 
missioners and  as  members  of  the  commission. 

(10)  The  commission  is  hereby  vested  with  the  power  to  make  such 
rules  and  regulations  and  prepare  such  forms  as  it  may  deem  proper 
for  its  use  and  government  or  for  the  use  and  government  of  the  boards 
of  equalization  and  assessors  of  the  counties,  or  to  obtain  any  evidence, 
information,  and  statistics  relating  to  the  value  and  condition  of  prop- 
erty to  be  equalized,  or  for  any  other  purpose  that  it  may  deem  mate- 
rial or  useful;  to  regulate  and  prescribe  the  mode  of  taking  evidence, 
whether  by  affidavit  or  otherwise;  to  send  for  papers  and  witnesses;  to 
compel  the  attendance  of  witnesses;   and  to  administer  oaths  to  wit- 
nesses and  do  and  perform  such  other  acts  and  prescribe  such  other 
regulations  as  may  be  necessary  to  carry  out  the  provisions  of  this  act. 
The  commission  shall  prepare  and  the  comptroller  shall  furnish  to  as- 

78 


COMMITTEE  o.\  TAXATION. 

sessors  schedules  conforming  to  the  different  classifications  of  assess- 
ments and  all  other  necessary  forms. 

(11)  The  commission   shall   require   assessors   to   furnish   biweekly 
reports,  giving  specific  information  relating  to  assessment  and  other 
facts  concerning  properties  recently  sold.     Blanks  shall  be  furnished 
assessors  for  this  purpose  by  the  commission. 

(12)  It  shall  be  the  duty  of  the  commission  to  procure  the  assess- 
ment of  all  property  in  the  state  at  the  actual  cash  value  thereof,  and 
it  is  hereby  required  to  exercise  all  powers  herein  conferred  upon  it  to 
that  end. 

(13)  The  commission  shall  have  the  power,  and  it  shall  be  its  duty, 
to  remove  from  office  the  assessor  of  any  county  who  fails  or  refuses  to 
comply  with  his  duties  of  office  as  provided  in  this  act;   and  the  com- 
mission shall  name  an  assessor  in  his  stead,  as  provided  in  subdivision 
2  of  section  9  of  this  act. 

(14)  The  commission  may  require  the  register  of  deeds,  assessor,  or 
county  court  clerk  in  each  county  to  report  to  it  all  transfers  of  land, 
at  such  intervals  and  in  such  manner  as  the  commission  may  require. 

(15)  The  commission  shall  prepare  and  adopt  tax  maps  for  each 
county  in  the  state  as  soon  as  practicable.     The  state  geologist  and  all 
other  public  officials,  when  called  upon  to  do  so  by  the  commission,  shall 
render  such  aid  in  the  preparation  of  tax  maps  as  may  lie  withih  their 
power,  consistent  with  the  duties  of  their  offices. 

(16)  The  commission  may  hold  such  special  meetings  at  such  places 
as  a  majority  of  the  members  thereof  may  think  proper,  and  shall  give 
notice  to  the  general  public  by  publishing  the  time  and  place  of  all 
meetings  in  advance  of  said  meetings  in  some  daily  newspaper  pub- 
lished in  the  grand  division  of  the  state  in  which  the  meeting  is  to  be 
held. 

(17)  In  addition  to  other  sessions  held  for  other  purposes,  as  pre- 
scribed in  this  act,  the  commission  shall  hold  annual  sessions  at  the 
Capitol  at  Nashville,  commencing  on  the  first  Monday  in   September, 
1915,  for  the  purpose  of  equalizing,  under  the  provisions  of  this  act,  the 
assessment  of  all  properties  assessed  during  the  year  the  annual  session 
is  held,  which  session  shall  be  known  as  the  equalization  session  of  the 
commission.     The  commission  shall  have  jurisdiction  of,  and  it  shall 
be  its  duty  to  equalize  at  said  session,  the  assessment  of  all  properties 
in  this  state. 

Taxpayers  and  property  owners,  without  further  notice  than  this 
act,  are  required  to  take  notice  of  said  sessions.  Said  sessions  shall 
continue  from  time  to  time  or  day  to  day  until  the  equalization  is  com- 
pleted. If,  during  any  such  session,  it  shall  be  deemed  necessary,  ad- 
journment of  the  session  may  be  made  to  any  other  place  in  the  state 
designated  by  the  commission. 

The  commission  may,  at  any  session,  hear  appeals  from  the  action 
of  the  members  of  the  Railroad  Commission  of  the  State  of  Tennessee, 
acting  as  state  tax  assessors,  or  from  the  board  of  equalization,  trustee, 
or  county  court  clerk  of  any  county  in  correcting  assessments  of  prop- 
erty, the  commission  being  hereby  vested  with  the  powers  and  duties 
of  the  state  board  of  equalization,  heretofore  -composed  of  the  Governor, 
treasurer,  and  secretary  of  state. 

The  commission,  at  regular  session,  as  well  as  at  any  other  session, 
may  give  notice  to  any  taxpayer  within  its  jurisdiction,  requiring  him 
to  appear  before  it  within  ten  days  next  after  the  notice  is  served  upon 
him,  and  at  the  time  and  place  designated  in  this  notice  the  commis- 
sion may  correct  the  assessment  of  the  property  of  any  taxpayer  of  the 
state. 

(18)  During  the  sessions  of  the  commission  any  taxpayer  of  the 

79 


COMMITTEE  ox  TAXATION. 

state,  or  any  owner  of  property  subject  to  taxation  in  the  state,  shall 
have  the  right  to  a  hearing  and  determination  of  any  complaint  such 
taxpayer  or  owner  of  property  may  make  on  the  ground  property  other 
than  the  property  of  such  taxpayer  or  owner  has  been  assessed  at  less 
than  the  actual  cash  value  of  the  same,  or  at  a  less  percentage  of  value 
than  the  property  of  such  taxpayer  or  owner  of  property;  but  the  com- 
plaint, subject  to  amendment  for  cause,  shall  be  specified  in  writing  and 
filed  with  said  commission  on  or  before  the  first  day  of  any  session. 

(19)  In   like   manner   any   state   or   county   assessor,   county   court 
clerk,  or  trustee  may  file  a  complaint  in  writing,  pointing  out  wherein 
any  taxpayer  has  been  inadequately  assessed  or  whose  property  has 
escaped  taxation;  and  when  said  complaint  shall  have  been  filed,  the 
secretary  of  the  commission  shall  cause  a  copy  thereof  to  be  served 
on  the  owner  of  the  property  referred  to  in  said  complaint  at  least  five 
days  before  a  day  fixed  for  the  hearing  of  said  complaint;  and  the  said 
commission  shall  have  the  power,  at  the  time  given  in  the  notice  or  at 
any  time  which  said  hearing  may  be  continued  or  adjourned  by  the 
commission,  to  correct  the  assessment  on  said  property  or  to  assess  the 
same  at  its  full  cash  value. 

(20)  It  shall  be  the  duty  of  the  commission  at  such  sessions  to 
equalize,  compute,  and  fix  the  values  of  such  properties  so  that  the  value 
of  all  assessments  equalized  by  said  commission  shall  conform  to  said 
standard  of  actual  cash  value.     Equalization  may  be  made  by  the  com- 
mission of  classifications  of  properties  and  by  wards,  civil  districts,  or 
counties,  or  in  such  manner  as  the  commission  may  deem  will  best  en- 
able it  justly  and  equitably  to  equalize  assessments  in  conformity  with 
said  standard. 

(21)  Provided,  that  before  the  assessment  of  the  property  in  any 
county  in  this  state  shall  as  a  whole  be  raised  or  reduced  or  in  any 
manner  changed,  it  shall  be  the  duty  of  the  said  commission  to  give  ten 
days'  notice  in  writing  to  the  chairman  of  the  county  court  or  the 
county  judge  of  the  said  county  of  their  purpose,  on  a  day  fixed  in  said 
notice,  not  less  than  ten  days  after  the  service  of  said  notice,  to  con- 
sider the  assessment  of  property  in  said  county;  and  provided,  further. 
that  before  the  said  commission  shall  raise,  reduce,  or  in  any  manner 
change  the  assessment  of  the  property  in  any  county,  proof  shall  be 
taken  by  said  commission,  and  the  commission  shall  have  the  power  to 
issue  summons  for  witnesses,  which  summons  and  the  notices  herein- 
before provided  for  shall  be  executed  by  the  sheriff  or  any  lawful  officer 
of  the  county. 

(22)  Hereafter  all  appeals  provided  for  in  this  act  from  the  deci- 
sions of  the  members  of  the  Railroad  Commission  of  the  State  of  Ten- 
nessee, trustees,  county  court  clerks,  or  boards  of  equalization,  shall  be 
made  to  the  commission. 

(23)  The  commission  shall  enter  or  cause  to  be  entered  in  a  book 
prepared  for  the  purpose,  a  record  of  its  action  in  equalizing  proper- 
ties, showing  corrections  and  changes   in  assessments,   increases  and 
decreases  in  the  values  of  property  by  percentage  or  otherwise;    and 
proper  and  necessary  certificates  of  the  same  shall  be  certified  to  the 
members  of  the  Railroad  Commission  of  the  State  of  Tennessee  and  to 
the  assessors  of  the  counties  affected,  who  shall  make  proper  and  cor- 
rect entries  of  the  same  upon  the  tax  books,  to  be  turned  over  to  the 
comptroller  and  trustees. 

(24)  The  action  of  the  commission  shall  be  final  and  conclusive  as 
to  all  matters  passed  upon  by  the  commission,  and  taxes  shall  be  col- 
lected upon  the  valuation  so  fixed  and  found  by  the  commission. 

(25)  The  commission  shall  also  hear  appeals  upon  matters  of  reas- 

80 


COMMITTEE  ox  TAXATION. 

sessments  or  correction  of  assessments  made  by  the  comptroller,  trus- 
tees, or  county  court  clerks. 

The  right  of  appeal  from  decisions  of  said  comptroller,  trustees,  or 
county  court  clerks  in  the  matter  of  correction  or  reassessments  is 
hereby  given  to  the  state  and  county,  or  party  assessed  or  reassessed, 
provided  said  appeal  is  prosecuted  within  ten  days  from  the  date  of 
such  reassessment  or  attempt  to  reassess;  and  the  comptroller,  trustee, 
or  county  court  clerk  shall,  upon  such  appeal  being  perfected,  certify 
his  action  to  the  commission,  whose  duty  it  shall  be  to  hear  the  matter 
in  controversy  within  ten  days  from  the  filing  of  the  notice  of  appeal 
with  it,  provided  it  is  then  in  session. 

(26)  When  the  commission  shall  have  finished  the  equalization  of 
properties  assessed  during  the-  year,  it  shall  append  to  the  record  of  its 
actions  an  official  certificate,  signed  by  its  members,  that  the  values  of 
assessments  equalized  by  it  have  been  equalized,  fixed,  and  computed 
in  conformity  with  the  standard  prescribed  by  this  act,  and  that  all 
properties  for  the  purpose  of  taxation  have  been  valued  at  the  actual 
cash  value  thereof. 

(27)  It  shall  be  the  duty  of  the  members  of  the  Railroad  Commis- 
sion of  the  State  of  Tennessee,  and  of  each  county  judge  or  chairman 
of  a  county  court,  county  court  clerk,  county  trustee,   assessor,   and 
member  of  a  county  board  of  equalization,  to  fill  out  and  return  blanks 
and  furnish  information,  evidence,  and  affidavits,  when  called  upon  to 
do  so  by  the  commission;  and  it  shall  also  be  the  duty  of  the  members 
of  the  Railroad  Commission  of  the  State  of  Tennessee,  when  acting  as 
state  tax  assessors,  and  of  the  county  boards  of  equalization,  to  observe 
such  rules  and  regulations  as  may  be  prescribed  by  the  commission  for 
their  use  and  government. 

(28)  It  shall  be  the  duty  of  the  commission  to  certify  in  writing  any 
violation  of,  or  failure,  refusal,  or  neglect  on  the  part  of,  any  assessor, 
deputy  assessor,  member  of  a  board  of  equalization,  county  judge  or 
chairman  of  a  county  court,  county  court  clerk,  trustee,  or  other  official, 
and  to  file  such  certification  in  the  office  of  the  comptroller;  and  the 
comptroller  shall  direct,  in  case  such  offense  is  punishable  with  a  pen- 
alty, the  proper  district  attorney  to  institute  proceedings  as  prescribed 
in  this  act  to  recover  such  penalty,  and,  in  case  the  offense  is  punish- 
able as  a  misdemeanor,  the  proper  district  attorney  ex  officio  to  prose- 
cute the  offender. 

(29)  Said  commission  shall  certify  in  writing,  to  the  comptroller  of 
the  state  and  the  county  judge  or  chairman  of  the  county  court  of  the 
county  where  such  property  is  located,  all  evidence  of  any  properties 
escaping  taxation,  with  the  name  and  owners  and  location  of  the  prop- 
erties to  be  investigated  and  proceeded  with  as  required  by  law. 

(30)  All  necessary  and  proper  office  and  traveling  expenses  incurred 
in  the  performance  of  the  duties  imposed  under  this  act  by  said  com- 
missioners or  the  employees  of  the  commission  shall  be  paid  out  of  the 
state  treasury  upon  the  sworn  itemized  statement  of  one  of  the  members 
of  the  commission.     Such  expense  account  shall  be  approved  by  the 
comptroller,  and  he  shall  issue  his  warrant  for  same;  and  this  amount 
shall  be  payable  upon  his  warrant,  and  the  amount  necessary  for  the 
carrying  out  of  the  provisions  of  this  act  is  hereby  appropriated. 

(31)  In  all  suits  brought  or  prosecuted  by  said  commission,  or  by 
a  county  judge  or  chairman  of  a  county  court,  county  court  clerk,  trus- 
tee, or  other  public  official  for  the  collection  of  taxes  or  public  revenue, 
if  in  the  federal  court,  the  attorney-general  of  the  state  shall  conduct 
said  suit  on  behalf  of  the  state  and  county;  and  if  in  the  circuit  court, 
the  district  attorney-general  for  the  circuit  wherein  the  suit  is  pending 

81 


COMMITTEE  ox  TAXATION. 

shall  conduct  said  suit  on  behalf  of  the  state  and  county  or  public  of- 
ficials. 

In  all  litigation  in  the  Supreme  Court  of  the  State,  in  which  taxes  or 
other  public  revenue  are  involved,  the  state  shall  be  represented  by  the 
attorney-general  of  the  state. 

In  all  litigation  before  the  trustee,  county  court  clerk,  circuit  court, 
chancery  court,  or  the  commission,  whether  by  motion,  suit,  or  other- 
wise, in  which  the  assessment  of  state,  county,  or  municipal  taxes  is 
involved,  the  state  shall  be  represented  by  the  district  attorney-general 
or  his  assistant  for  the  circuit  from  which  said  litigation  arose. 

The  district  attorney-general  may  be  assisted  by  the  county  attorney 
for  the  county  in  which  the  litigation  arose;  but  in  no  case  shall  said 
attorney-general  for  the  state,  district  attorney-general,  county  attor- 
ney, or  their  assistants,  receive  any  extra  compensation  for  said  litiga- 
tion. No  other  attorney  than  those  herein  enumerated  shall  receive 
any  compensation  for  the  litigation  herein  specified. 

(32)  On  the  tenth  day  of  January,  1917,  and  every  two  years  there- 
after, ,the  commission  shall  submit  a  review  of  its  work  in  narrative 
and  statistical  form  to  the  Governor,  and,  with  this  review,  sugges- 
tions and  recommendations  by  the  commission  with  reference  to 
changes  in  the  revenue  and  assessment  acts  with  reference  to  any  re- 
forms or  amendments  to  the  tax  law  of  the  state,  and  such  other  infor- 
mation as  it  may  deem  advisable. 

SECTION  38.  Be  it  further  enacted.  That  should  the  property  in  any 
district  or  ward,  or  any  part  hereof,  escape  assessment  or  fail  in  any 
manner  to  be  assessed,  the  trustee  is  hereby  required  to  assess  the  same 
at  its  actual  cash  value,  and  report  the  amount  of  the  taxes  thereon 
collected  to  the  county  court  as  "  picked-up  "  taxes  at  the  same  time  he 
reports  lists  of  errors,  etc.,  giving  a  description  of  said  property,  dis- 
trict or  ward  in  which  located;  and  the  clerk  of  the  court  is  hereby 
required  to  certify  copies  of  said  report  to  the  officers  with  wrhom  the 
trustee  by  law  is  required  to  settle;  and  the  trustee  shall  account  for 
the  same  in  making  final  settlements  of  his  various  accounts;  but  no 
assessment  authorized  by  this  section  or  by  section  30  of  this  act  shall 
be  made  for  any  other  years  than  for  the  years  in  which  said  assess- 
ments shall  be  made  and  for  six  years  preceding  same. 

SECTION  39.  Be  it  further  enacted,  That — 

(1)  Each  assessor  shall  make  out  from  the  assessment  books  in  his 
possession  a  tax  book,  and  deliver  it  to  the  trustee  of  the  county  on  or 
before  the  first  Monday  of  December  each  and  every  year,  respectively; 
and  he  shall  receive  such  compensation  as  the  county  court  shall  al- 
low; provided,  that  the  trustee  shall,  at  the  date  of  his  induction  into 
office,  have  entered  into  the  several  bonds  in  the  amount  of  taxes  as 
required  by  law. 

(2)  Said  tax  books  shall  be  made  out  by  districts,  and  shall  be  ruled 
in  suitable  and  appropriate  columns,  and  shall  show  names  of  owners 
in  alphabetical  order,  the  number  of  lots  and  blocks,  number  of  acres, 
description  of  the  property  as  contained  in  the  assessment  roll,  the 
value  of  each  lot,  tract,  or  parcel  of  land,  the  valuation  of  personal 
property  under  the  appropriate  head  or  items  called  for  by  this  act, 
and  the  total  valuation  of  real  and  personal  property  against  each  tax- 
payer; also  all  poll  taxes  due  according  to  said  assessment  books.     On 
the  total  valuation  of  the  real  property  of  each  taxpayer,  the  state, 
county,  special,  road,  school,  and  municipal  taxes  shall  be  extended  in 
appropriate  columns  separately,  according  to  and  at  the  rate  levied  by 
the  proper  authority  for  each  of  said  purposes,  and  a  column  added 

82 


CO  }  1  M 1 TT  E  K    (')  N    TAX  A  TIOX . 

showing  the  total  of  all  taxes  levied  for  all  purposes  and  to  be  collected 
from  each  taxpayer. 

SECTION  40.  Be  it  further  enacted.  That  taxes  on  property  for  munic- 
ipal purposes  shall  be  imposed  on  the  value  thereof  as  the  same  is  as- 
certained by  the  assessment  for  state  taxation,  and  shall  be  collected 
by  the  same  officers  at  the  time  and  in  the  mariner  prescribed  for  the 
collection  of  the  state  revenue,  except  as  herein  provided;  and  it  shall 
be  the  duty  of  the  assessor,  in  making  out  the  tax  books,  to  place 
all  the  property  within  the  limits  of  any  given  municipality  so  that  it 
will  be  separate  from  the  other  property;  and  by  footing  up  the  as- 
sessed valuations  on  each  page  and  recapitulating  such  footings  he  shall 
show  the  aggregate  valuation  of  all  property  within  the  limits  of  each 
incorporated  town,  city,  or  taxing  district;  and  in  the  same  manner 
he  shall  show  the  aggregate  valuation  of  all  property  within  the  limits 
of  the  county.  The  tax  books  for  realty  shall  show  the  name  of  the 
owner,  if  known;  the  description  of  each  lot,  tract,  or  parcel  of  land, 
and  the  value  thereof. 

SECTION  41.  Be  it  further  enacted.  That  all  taxes — state,  county,  and 
municipal — to  be  collected  under  this  act  shall  be  payable  the  first  Mon- 
day in  December  in  each  year,  except  municipal  taxes  of  cities  having 
a  population  of  100,000  or  over  by  the  federal  census  of  1900  or  any  sub- 
sequent federal  census,  and  such  other  municipal  corporations  which, 
under  existing  laws,  are  authorized  to  collect  their  own  taxes  on  prop- 
erty, privileges,  and  polls.  All  delinquent  property  taxes  of  all  kinds 
of  all  municipal  corporations  shall  be  certified  by  the  proper  officer  of 
said  corporations  to  their  respective  county  trustees  by  the  first  of  Sep- 
tember of  the  year  next  after  they  accrue;  and  the  property  against 
which  said  taxes  are  assessed  shall  be  sold  by  the  trustee  at  the  same 
time  and  as  a  part  of  his  other  sales,  and  the  proceeds  of  such  sales 
shall  be  disposed  of  and  the  property  may  be  redeemed  as  elsewhere 
provided  in  this  act;  provided,  that  municipal  corporations  having  the 
power  under  their  charter,  to  collect  their  own  taxes  can  provide  by 
ordinance  for  the  collection  of  their  delinquent  taxes,  except  municipal 
corporations  having  a  population  over  14,000  and  not  over  20,000  by  the 
federal  census  of  1900  or  any  subsequent  federal  census,  and  at  the  end 
of  said  section  after  the  words  "  and  polls  "  insert  as  follows:  "  Except 
such  corporations  as  by  the  federal  census  of  1900  or  any  subsequent 
federal  census  that  have  a  population  of  over  14,000  and  not  over  20,000; 
and  all  delinquent  taxes  not  barred  by  the  statute  of  limitations  shall 
by  the  proper  officer  of  such  cities  be  certified  to  their  county  trustees 
by  the  first  of  September  of  each  year,  and  the  property  against  which 
said  taxes  are  assessed  shall  be  sold  by  the  trustee  at  the  same  time 
and  as  a  part  of  his  other  sales,  and  the  proceeds  of  such  sales  shall  be 
disposed  of  and  the  property  may  be  redeemed  as  elsewhere  in  this  act 
provided;  provided,  nothing  in  this  section  shall  apply  to  municipal 
corporations  which  have  a  right  under  the  provisions  of  their  charters 
to  assess  and  collect  their  own  taxes  on  property,  privileges,  and  pells." 

SECTION  42.   Be  it  further  enacted,  That — 

(1)  The  trustee  shall  give  to  each  taxpayer  a  receipt,  written  in  ink, 
for  all  the  taxes  paid  by  him,  numbered,  dated,  and  filled  up,  so  as  to 
•show,  in  case  of  land,  by  whom  and  on  what  taxes  were  paid;  and  it 
shall  be  the  duty  of  the  county  court  of  each  county  to  furnish  the 
trusted  thereof  a  sufficient  number  of  tax  receipts,  printed  in  duplicate 
and  in  a  blank  form  in  a  book  or  books  numbered  from  one  up,  con- 
secutively, and  shall  have  the  year  for  which  said  taxes  are  due  printed 
in  large  figures,  not  less  than  one  inch  deep,  on  the  face  of  each  re- 

83 


COMMITTEE  ON  TAXATION. 

ceipt.  The  trustee  shall  be  charged  with  these  receipts,  and  must  in 
his  final  settlement  account  for  each  blank  receipt  so  received  by  him; 
and  no  payment  to  the  trustee  of  any  tax  shall  be  legal  and  binding 
unless  paid  upon  the  regular  tax  receipt  herein  specified,  and  duplicate 
receipts  shall  be  preserved  in  said  book  or  books,  to  be  submitted  to  the 
county  court  by  the  trustee  whenever  required  to  do  so;  and  said  re- 
ceipt book  of  duplicates,  when  filled,  shall  be  filed  in  the  office  of  the 
assessor  for  reference,  and  shall  be  receipted  for  by  the  assessor  and 
carefully  preserved  in  his  office  as  a  record  for  the  protection  of  tax- 
payers who  have  paid  their  taxes  and  lost  or  misplaced  their  receipts; 
provided,  However,  that  in  counties  of  30,000  population  or  over  said 
duplicate  receipts  will  remain  in  the  trustee's  office  as  a  part  of  the 
records  thereof. 

(2)  It  shall  also  be  the  duty  of  the  county  court  to  furnish  to  the 
county  trustee  blank  poll  tax  receipts  not  less  in  number  than  one  and 
one-half  times  the  number  of  polls  assessed.     Such  receipts  shall  be 
printed  in  duplicate  and  all  numbered  from  one  up,  consecutively,  and 
bound  in  books  of  twenty -five,  fifty,  and  one  hundred  each,  and  shall  have 
the  year  printed  in  large  figures  on  the  face  of  the  receipt  not  less  than 
one  inch  deep  each. 

(3)  Every  poll  taxpayer  shall  receive  one  of  these  receipts  from  the 
trustee  or  deputy  trustee  or  constable;  provided,  that  one  receipt  shall 
be  sufficient  for  realty  and  poll. 

(4)  The  trustee  shall  be  charged  with  these  receipts,  and  must  ac- 
count for  each  receipt  in  his  final  settlement,  either  in  money  or  by 
returning  the  receipts  unused,  or  giving  a  satisfactory  explanation  for 
failing  to  do  so. 

(5)  It  shall  be  a  misdemeanor  for  any  person  to  print,  issue,  or  use 
any  counterfeit  poll  tax  receipts,  punishable  by  a  fine  of  not  less  than 
one  hundred  dollars  nor  more  than  five  hundred  dollars. 

SECTION  43.  Be  it  further  enacted,  That  the  assessor  shall  make  out 
from  said  tax  books  an  aggregate  statement,  showing  the  value  of  all 
town  lots,  the  number  of  acres,  and  value  of  all  tracts  of  land  and  the 
value  of  all  personal  property.  This  statement  shall  be  made  and  the 
tax  shown  by  civil  districts  and  wards,  and  shall  show  the  aggregate 
for  the  whole  county  from  the  items  named.  The  assessor  shall  specify 
in  said  statement  which  of  said  districts  are  urban  and  which  are  coun- 
try districts.  This  statement  shall  be  forwarded  to  the  comptroller  on 
or  before  the  first  Monday  in  November  in  each  and  every  year.  He 
shall  also  certify  a  like  statement  to  the  mayor  of  each  municipality  by 
said  date. 

SECTION  44.  Be  it  further  enacted.  That  should  any  assessor  fail  to 
comply  with  the  requirements  of  sections  41,  42,  and  43  of  this  act, 
when  within  his  power  to  do  so,  he  shall  forfeit  all  claims  for  compen- 
sation for  labor  and  services  for  making  out  and  preparing  said  tax 
books. 

SECTION  45.    Be  it  further  enacted,  That — 

(1)  It  shall  be  the  duty  of  the  assessor  to  make  a  return  to  the 
county  court  clerk  of  the  name  of  each  person,  company,  firm,  or  cor- 
poration engaged  in  any  business  liable  in  any  way  to  pay  a  privilege 
tax  in  each  district  or  ward  under  the  provisions  of  law. 

(2)  It  shall  be  the  duty  of  the  county  judge  or  chairman  of  the 
county  court  and  of  the  county  court  clerk  to  examine  the  list  so  re- 
turned and  compare  the  same  with  the  list  of  persons  paying  privi- 
leges; and  he  shall  report  the  result  to  the  quarterly  court  at  the  Oc- 

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COMMITTEE  ox  TAXATION. 

tober  term  following  the  assessment,  and  the  said  report  shall  be  read 
in  full  meeting  of  the  county  court  and  spread  upon  the  minutes  of  the 
court. 

> 

SECTIOX  46.   Be  it  further  enacted,  That — 

(1)  Every  male  inhabitant  between  the  ages  of  twenty-one  and  fifty 
years,  except  persons  who  are  deaf,  dumb,  blind,  or  incapable  of  labor 
and  of  earning  a  livelihood,  shall  pay  a  poll  tax  for  school  purposes. 
Such  persons  as  are  liable  to  poll  tax  upon  the  tenth  day  of  January 
of  each  year  and  exemption  under  this  act  shall  be  fixed  according  to 
the  age  of  the  person  on  the  tenth  day  of  January  of  each  year. 

(2)  The  rate  of  taxation  on  every  taxable  poll  shall  be  one  dollar. 
Said  poll  tax  shall  be  collected  annually  by  the  trustee,  and  shall  be 
appropriated  for  common-school  purposes  in  the  manner  prescribed  by 
law. 

(3)  Every  taxpayer  shall  pay  his  poll  tax,  if  liable  for  poll  tax,  at 
or  before  the  time  he  pays  his  property  tax.     No  trustee  shall  receive 
from  any  taxpayer  his  property  tax  and  receipt  him  therefor  until  his 
poll  tax  is  paid,  if  liable  for  poll  tax;  provided,  the  trustee  shall  not 
enforce  this  section  where  the  taxpayer  in  good  faith  claims  that  he  is 
not  liable  for  the  payment  of  the  poll. 

Every  trustee  who  violates  this  section  or  permits  it  to  be  violated 
by  any  of  his  deputies  shall  be  held  liable  for  all  poll  taxes  that  may 
become  delinquent  on  account  of  such  violation;  and  any  collector  of 
revenue  may  proceed  against  such  trustee  who  shall  receive  from  any 
taxpayer  his  property  tax  and  receipt  him  therefor  until  his  poll  tax 
is  paid,  if  liable  for  poll  tax;  provided,  the  trustee  shall  not  enforce 
this  section  where  the  taxpayer  in  good  faith  claims  that  he  is  not 
liable  for  the  payment  of  a  poll. 

SECTION  47.    Be  it  further  enacted,  That — 

(1)  The  clerk  of  the  county  court  shall  collect  all  taxes  on  privi- 
leges and  merchants  unless  otherwise  provided. 

(2)  And  the  county  trustee  shall  continue  to  act  as  the  collector  of 
taxes  in  accordance  with  the  provisions  of  sections  1  and  2  of  an  act 
approved  on  the  twenty-fourth  day  of  March,  1875,  entitled   "An  act 
more  cheaply  to  collect  the  State,  county,  and  municipal  revenue." 

SECTION  48.  Be  it  further  enacted.  That  every  taxpayer  shall  pay  his 
state,  county,  municipal,  highway,  school,  and  all  his  property  and 
poll  taxes  to  said  county  trustee,  except  when  otherwise  provided  by 
law;  and  said  taxes  shall  be  due  and  payable  on  the. first  Monday  in 
December  of  each  year,  and  shall  bear  interest  from  the  first  day  of 
March  following,  and,  in  addition,  a  penalty  of  one  per  centum  for  each 
month  the  taxes  are  delinquent,  to  be  added  on  the  first  day  of  each 
month,  beginning  with  the  first  of  March,  except  as  otherwise  provided 
in  regard  to  municipal  and  poll  taxes. 

SECTION  49.    Be  it  further  enacted,  That — 

(1)  All  taxes  remaining  unpaid  on  the  first  day  of  March  of  each 
year  shall  immediately  be  collected  by  the  county  trustee  by  distress 
and  sale  of  any  personal  property  liable  therefor;   and  the  tax  books 
in  the  hands  of  said  trustee  and  the  delinquent  lists  to  be  furnished, 
as  herein  provided,  to  deputy  trustees  or  constables,  shall  have  the 
force  and  effect  of  a  judgment  and  a  distress  warrant  and  an  execution 
from  a  court  of  record  authorizing  him  to  make  such  distraint  and  sale. 

(2)  Ten  days'  notice  of  the  time  and  place  of  said  sale  shall  be  given 
by  advertisement  put  up  in  three  public  places  in  the  county,  one  of 

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COMMITTEE  ON  TAXATION. 

which  shall  be  in  the  district  where  the  taxpayer  resides  and  one  of 
which  shall  be  at  the  courthouse  door. 

(3)  The  officers  shall  in  all  cases  have  the  personal  property  pres- 
ent when  sold,  and  shall  be  allowed  to  retain,  in  addition  to  the  taxes, 
all  commissions,  costs,  and  necessary  expenses  of  removing  and  keeping 
the  property  distrained. 

(4)  In  cases  where  the  officer  cannot  find  personal  property  sufficient 
to  satisfy  said  taxes,  he  is  authorized  to  proceed  by  garnishment  proc- 
ess, returnable  before  some  justice  of  the  peace  on  any  day  succeed- 
ing the  service.     The  proceedings  on  the  return  of  such  garnishment 
process  shall  be  as  provided  in  cases  of  garnishment  on  execution,  and 
on  judgment,  if  upon  the  answer  of  the  garnishee  the  judgment  shall 
go  against  him,  and  said  judgment  shall  be  in  the  name  of  said  officer. 

(5)  On  all  taxes  collected  by  the  trustee,  the  trustee  or  his  deputies 
or  constables,  whichever  performed  the  services,  shall  have  the  same 
fees  where  they  collect  by  distress  or  distress  and  sale  as  are  aflowed 
for  collecting  executions. 

(6)  After  the  taxes  become  delinquent,  the  county  trustee  shall  have 
power  to  appoint  such  deputies  as  may  be  necessary  for  the  collection 
of  the  delinquent  taxes;  and  in  such  cases  he  shall  furnish  the  deputy 
with  a  list  of  the  delinquent  taxpayers,  with  the  description  of  the 
property  assessed  against  each  and  the  amount  of  taxes  due  from  each. 

(7)  The  trustee  shall  keep  a  record  of  all  levies  made  by  himself 
or  deputies  and  of  proceedings  under  such  levies. 

(8)  The  deputy  trustees  appointed  to  collect  delinquent  taxes  shall 
be  allowed  all  the  fees  and  costs  earned  by  each  and  accruing  on  such 
lists,  and  the  trustee  shall  not  be  required  to  account  for  such  fees  and 
costs  as  a  part  of  the  emoluments  of  his  office  under  the  existing  laws. 

(9)  The  trustee  shall  make  out  a  list  of  all  delinquent  poll  taxes  by 
districts,  and  shall  place  the  same  in  the  hands  of  the  constables  in 
each  district  or  a  deputy  trustee  not  later  than  the  tenth  day  of  April 
next  after  the  year  for  which  said  poll  taxes  were  levied;  and  for  col- 
lecting such  taxes  the  officer  shall  be  entitled  to  collect  as  compensation 
a  commission  of  ten  per  centum  on  the  amount  of  poll  tax,  in  addition 
to  the  commission  now  allowed  by  law  for  collecting  executions,  which 
commissions  shall  be  paid   by  the  delinquent.     If  it   is  necessary  to 
collect  such  delinquent  poll  taxes  and  the  aforesaid  ten  per  centum  com- 
mission aforesaid  by  distress  and  sale  or  garnishment,  as  hereinbefore 
provided  in  collecting  taxes  assessed  against  owners  of  real  estate,  the 
officer  shall  have  the  same  fees  as  now  allowed  for  like  services. 

(10)  All  lists  shall  be  returned  by  such  officer  on  or  before  the  first 
day  of  June,  and  after  said  date  poll  taxes  may  be  paid  by  adding 
thereto  the  same  rate  of  interest  and  penalties  as  are  added  to  delin- 
quent real  estate  taxes. 

(11)  The  constable  or  deputy  trustee  shall  make  monthly  reports 
to  the  county  trustee  of  polls  collected,  and  pay  over  to  said  trustee  all 
poll  taxes  collected  during  the  month  after  retaining  the  fees  to  which 
he  is  entitled  by  law. 

(12)  On  the  first  day  of  June  the  constable  or  deputy  trustee  shall 
make  a  final  settlement  of  the  polls  in  his  hands  for  collection,  and  in 
the  settlement  shall  be  charged  with  the  aggregate  amount  of  polls  in 
his  hands  for  collection  and  be  credited  with  the  amount  collected  and 
accounted  for,  with  errors,  double  and  illegal  assessments,  and  with 
such  insolvent  or  other  polls  as  such  officer  shall  show  could  not  have 
been  collected  by  law  after  diligent  effort  on  his  part. 

(13)  Any  balance  found  due  on  such  settlements  may  be  recovered 
of  the  constable  or  deputy  trustee  and  his  sureties  on  his  bond,  by  suit 
or  motion,  on  five  days'  notice,  in  any  court  of  record,  instituted  by  the 

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COMMITTEE  ox  TAXATION. 

county  trustee  or  any  collector  of  revenue  or  district  attorney  of  the 
state. 

(14)  ,The  constable  or  deputy,  before  entering  upon  the  collection  of 
the  polls,  shall  enter  into  a  bond,  payable  to  the  State  of  Tennessee, 
in  a  sum  sufficient  to  cover  the  aggregate  amount  of  polls  to  be  col- 
lected, with  two  or  more  solvent  sureties,  and  conditioned  faithfully  to 
perform  the  duties  herein  and  discharge  every  balance  found  against 
him  upon  settlement  with  the  county  trustee,  which  said  bond  shall  be 
approved  by  the  trustee  and  filed  for  preservation  in  the  office  of  the 
clerk  of  the  county  court. 

(15)  Nothing  in  this  act  shall  be  so  construed  as  to  allow  the  trus- 
tee any  fee  for  making  out  the  list  of  delinquent  taxes  for  either  real 
estate  or  polls  for  the  deputy  trustee  or  constable;  nor  shall  the  trus- 
tee receive  any  fee  for  any  services  required  to  be  performed  by  him 
under  the  provisions  of  this  act,  except  the  commissions  herein  allowed. 

(16)  Nor  shall  any  deputy  or  constable  be  entitled  to  any  fee  for  any 
service  rendered  in  relation  to  any  delinquent  tax  in  his  hands  for  col- 
lection unless  he  collects  taxes  in  person  from  the  delinquent;  and  after 
delinquent  taxes  on  property  or  polls  have  been  returned  by  the  deputy 
trustee  or  constable  uncollected,  said  delinquent  may  thereafter  pay 
the  same  to  the  trustee  by  paying  the  interest  and  penalty  of  one  per 
centum  from  the  date  of  its  accrual. 

(17)  Any  trustee,  revenue  collector,  or  other  officer  having  charge 
of  the  collection  of  back  poll  taxes  who  refuses  to  give  a  receipt  where 
the  tax,  interest,  and  penalty  for  the  preceding  or  other  years  is  ten- 
dered by  any  party  volunteering  to  pay  his  poll  taxes,  is  hereby  guilty 
of  a  high  misdemeanor,  and,  upon  conviction,  shall  be  fined  not  less 
than  fifty  dollars  nor  more  than  one  hundred  dollars,  at  the  discretion 
of  the  court. 

SECTION  50.  Be  it  -further  enacted,  That  after  the  first  day  of  June 
of  each  year  the  trustee  shall  advertise  all  real  estate  upon  which  taxes 
remain  due  and  unpaid,  or  which  is  liable  for  sale  for  other  taxe%,  at 
the  door  of  the  courthouse  of  the  county  on  the  first  Monday  in  July 
following,  and  said  advertisement  shall  be  substantially  in  the  form 
following — to  wit: 

"  DELINQUENT  TAXPAYERS,   TAKE  NOTICE. 

"  On  the  first  Monday  in  July  next,  at  the  courthouse  door  [here 
name  county  and  town],  I  will  offer  for  public  sale  all  the  real  estate 
belonging  to  delinquent  taxpayers  for  the  year  -  — .  The  following 
is  a  list  of  such  delinquents,  the  district  in  which  the  property  is  situ- 
ated, and  the  number  of  acres  in  each  tract,  as  follows  [here  insert 
list  of  delinquents,  etc.] ;  and  if  said  sale  is  not  completed  on  the  said 
first  Monday  in.  July,  the  same  will  continue  from  day  to  day  until 
completed.  (Signed)  — ,  Trustee." 

Such  notice  shall  be  inserted  once  a  week  for  three  weeks  in  some 
newspaper  published  in  the  county;  and  if  none  is  published,  then  by 
posting  said  notice  at  the  courthouse  door  for  three  weeks  previous  to 
said  sale,  the  fee  therefor  to  be  paid  by  the  county.  But  error  in  said 
notice  shall  not  invalidate  any  sale  thereunder  if  the  land  be  so  de- 
scribed as  to  be  capable  of  identification. 

SECTION  51.  Be  it  further  enacted,  That  on  the  first  Monday  in  July, 
if  the  taxes  remain  unpaid,  the  trustee  shall  proceed  to  sell  land  of 
each  delinquent  taxpayer  to  pay  the  amount  of  taxes  due  by  him  and 
all  costs,  interest,  penalties,  and  charges  thereon,  to  the  highest  bidder 
for  cash;  and  the  sale  shall  be  continued  from  day  to  day  between  the 
hours  of  10  o'clock  A.M.  and  4  o'clock  P.M.  each  day  until  all  is  sold, 

87 


COMMITTEE  ON  TAXATION. 

and  the  trustee  shall  enter  on  the  tax  books  at  the  place  for  entering 
date  of  payment  the  words:   "  Sold  to  —  -  [name], 

-  [date]."  The  courts  shall  apply  the  same  lib- 
eral principles  in  favor  of  a  title  acquired  by  a  purchaser  at  a  sale  for 
delinquent  taxes  as  are  applied  to  sales  by  execution.  No  failure  to 
observe  the  requirements  of  the  law  with  respect  to  assessments  shall 
vitiate  an  assessment  or  affect  the  title  to  property  sold  for  delinquent 
taxes;  nor  shall  a  failure  to  collect  said  tax  by  distress  and  sale  of  per- 
sonal property  first  affect  said  title,  provided  the  land  be  so  described 
as  to  be  capable  of  identification. 

SECTION  52.  Be  it  further  enacted,  That  any  one  in  possession  of  land 
sold  for  taxes  under  the  provisions  of  this  act  shall  become  the  tenant 
of  the  purchaser  at  will  from  and  after  the  first  day  of  January  follow- 
ing the  date  of  sale;  provided,  however,  in  cases  where  the  tenant  has, 
prior  to  the  date  of  sale,  paid  his  rent  to  a  time  beyond  said  first  of 
January,  or  has,  prior  to  date  of  sale,  given  his  written  obligation  cov- 
ering a  period  of  time  beyond  said  first  day  of  January,  and  said  writ- 
ten obligation  is  legally  owned  or  held  by  third  parties,  then  the  ten- 
ancy defined  by  this  act  shall  continue  without  any  right  to  collect  rent 
on  the  part  of  the  purchaser  until  the  expiration  of  the  time  paid  for  or 
covered  by  such  written  obligation. 

SECTION  53.   Be  it  further  enacted,  That — 

(1)  No  tract,  lot,  or  parcel  of  land  shall  be  sold  for  less  amount 
than  the  amount  of  taxes,  interest,  penalties,  and  costs  and  charges  due 
thereon;  and  if  no  person  will  bid  the  amount  of  such  taxes,  interest, 
penalties,  costs,  and  charges,  the  trustee  shall  strike  the  same  off  to 
the  treasurer  of  the  state,  to  be  held  in  trust  for  the  use  of  the  state, 
county,  and  municipality,  said  sale. to  be  for  the  amount  of  said  taxes, 
interest,  penalties,  costs,  and  charges  thereon  due  to  the  state,  county, 
and  municipality. 

(2)  The  trustee  shall,  on  or  before  the  first  Monday  in  September 
thereafter,  file  in  the  office  of  the  clerk  of  the  circuit  court   in  his 
county  a  certified  list  of  the  lands  so  struck  off  by  him  to  the  state 
treasurer,  specifying  the  days  of  the  sale,  the  amount  of  the  respective 
taxes  for  which  said  sale  was  made,  and  each  item  of  costs  thereof, 
which  list  shall  be  made  in  book  form  and  kept  by  said  clerk  as  a  part 
of  the  official  records  of  his  office.     The  trustee  shall  likewise  forward 
a  certified  list  of  said  lands  to  the  commission. 

(3)  The  list  of  land  so  filed  with  said  clerk  shall  be  in  lieu  of  con- 
veyance, and  shall  vest  title  in  said  treasurer  for  the  use  aforesaid  to 
all  the  lands  embraced  in  such  list  as  a  conveyance  to  said  treasurer 
would  do. 

(4)  Said  list  may  be  certified  substantially  as  follows: 

"  I,  —  — ,  trustee  of  —  —  County,  Tennessee, 

do  hereby  certify  that  the  foregoing  is  a  correct  list  of  all  real  estate 
sold  by  me  to  the  state  treasurer  for  delinquent  taxes  of  the  year  —      — . 

This day  of  -  — ,  19 . 

"(Signed)  — ,  Trustee." 

(5)  A  copy  each  of  the  list  so  filed  with  the  clerk  shall  be  sent  both 
to  the  commission  and  comptroller  by  the  trustee,  the  correctness  of 
which  list  shall  be  certified  to  by  the  said  circuit  court  clerk. 

SECTION  54.   Be  it  further  enacted,  That — 

(1)  Land  struck  off  to  the  treasurer  of  the  state  for  taxes,  interest, 
and  penalties  shall  not  be  sold  again  for  taxes  subsequently  accruing 
until  the  same  shall  have  been  redeemed  or  purchased  as  provided  in 
sections  62  and  63  of  this  act. 

88 


COMMITTEE  ox  TAXATION. 

(2)  The  trustee  shall  report  such  subsequently  accruing  taxes,  in- 
terest, penalties,  and  costs  to  the  circuit  court  clerk,  who  shall  enter 
the  amount  thus  reported  as  a  charge  against  such  land. 

(3)  After  the  sale,  the  land  shall  be  assessed  to  the  party  owning 
the  right  of  redemption  therein. 

(4)  If  any  property  for  taxes  sold  and  struck  off  to  the  treasurer 
can  be  rented  for  a  sum  sufficient  to  pay  the  taxes,  costs,  and  penalties 
and  subsequently  accruing  taxes  within  one  year  from  taking  posses- 
sion after  deducting  from  such  rents  a  commission  of  ten  per  centum, 
which  may  be  allowed  to  any  agent  for  services  in  renting  such  prop- 
erty, then  the  clerk  may  take  possession  of  said  land  and  have  the  same 
rented  out.    The  net  rent  each  month  shall  be  credited  on  the  amount 
necessary  to  redeem  said  land. 

(5)  The  clerk  is  hereby  authorized  to  issue  such  writ  of  possession 
as  may  be  ordered  by  the  court  to  gain  possession  of  said  property  at 
any  time  it  may  be  necessary  to  remove  any  person  who  may  deny  his 
rights  to  possession  or  who  refuses  as  tenant  to  pay  rents  agreed  upon. 

SECTION  55.   Be  it  further  enacted,  That — 

(1)  The  trustee  shall  also  make  a  list  of  the  lands  sold  to  individ- 
uals, in  book  form,  in  the  same  manner  and  at  the  same  time  as  re- 
quired for  lands  struck  off  to  the  state  treasurer,  which  he  shall  file 
with  the  clerk  of  the  circuit  court  of  his  county,  which  shall  be  kept 
by  the  clerk  as  part  of  the  official  records  of  his  office;  but  a  failure  to 
make  return  or  record  of  said  list  or  a  defective  list  shall  not  affect  the 
title. 

(2)  The  list  of  lands  so  filed  shall  operate  to  vest  title  in  said  pur- 
chasers, respectively,  to  the  lands  purchased  in  fee  simple;   and  any 
purchaser  at  tax  sale  shall  be  entitled  to  receive,  if  he  demands  the 
same,  a  certificate  showing  his  purchase,  signed  by  said  trustee. 

(3)  The  trustee  shall  append  to  said  list  of  lands  sold  to  individuals 
a  certificate  substantially  as  follows: 

"  I,  —  — ,  trustee  of  -  —  County,  Tennessee, 

do  hereby  certify  that  the  foregoing  is  a  correct  list  of  all  real  estate 
sold  by  me  to  individuals  for  delinquent  taxes  of  the  year  -          — . 

This  -  -  day  of . 

"(Signed)  — ,  Trustee." 

SECTION  56.    Be  it  further  enacted,  That — 

(1)  The  lands  struck  off  to  the  treasurer  of  the  state  and  the  lists 
of  lands  sold  to  individuals  shall  remain  in  the  office  of  the  clerk  of  the 
circuit  court,  and  the  owner  of  the  land  or  any  person  for  him  or  any 
creditor  of  such  owner  may  redeem  the  same  within  two  years  from 
said  sale  by  paying  said  clerk,  regardless  of  the  amount  of  said  pur- 
chaser's bid  at  a  said  tax  sale,  the  whole  amount  of  the  taxes  for  which 
the  land  was  sold,  with  all  the  costs,  interest,  penalties,  and  charges 
consequent  upon  the  sale,  and  damages  or  penalties  at  the  following 
rate — viz.:  Six  per  centum  per  annum  interest  and  a  penalty  of  one  per 
centum  for  each  month  from  date  of  sale,  and  also  all  state,  county,  and 
municipal  taxes  that  have  accrued  on  such  land  since  the  sale,  with 
interest  thereon  at  the  rate  of  six  per  centum  per  annum  and  one  per 
centum  per  month  penalty  from  the  first  of  March  in  each  year  follow- 
ing the  year  for  which  such  taxes  are  assessed. 

(2)  And  this  interest  and  penalty  shall  accrue  on  subsequent  taxes 
in  favor  of  individual  purchasers  at  tax  sales,  who  may,  during  the 
month  of  February  or  after  that  time,  pay  subsequently  accruing  taxes. 

(3)  And  as  compensation  for  the  clerk,  he  shall  be  entitled  to  a  com- 
mission of  five  per  centum  on  the  whole  amount  of  the  redemption 

89 


COMMITTEE  ON  TAXATION. 

money  and  a  fee  of  fifty  cents  for  issuing  the  redemption  receipt,  which 
amount  shall  be  collected  from  the  delinquent,  which  receipt  shall  in- 
clude all  property  redeemed  by  any  person  at  one  time. 

(4)  Saving  to  persons  under  disability,  whose  lands  may  be  sold  for 
taxes,  a  right  to  redeem  the  same,  within  two  years  after  such  disabil- 
ity shall  have  been  removed,  from  the  purchaser  thereof,  on  the  terms 
herein  prescribed,  on  their  paying  the  enhanced  value  of  the  land  re- 
sulting from  any  permanent  improvements  on  the  land  after  the  expi- 
ration of  two  years  from  the  date  of  sale  of  the  land  for  taxes;  'pro- 
vided, the  value  of  such  improvements  shall  not  exceed  the  rental  value 
of  the  land. 

SECTION  57.   Be  it  -further  enacted,  That — 

(1)  On  any  day  of  any  term  of  the  circuit  court  after  the  time  when 
such  lists  of  lands  sold  for  taxes  and  struck  off  to  the  treasurer  of  the 
state  or  sold  to  individuals  are  filed  with  the  clerk  of  said  court,  it 
shall  be  the  duty  of  the  court,  upon  motion  of  the  trustee  or  any  col- 
lector of  revenue  of  the  state  or  any  purchaser,  to  enter  a  decree  in 
form  about  as  follows: 

THE  STATE  OF  TENNESSEE. 
For  uses,  etc., 

v. 

Delinquent  property — real-,  personal,  and  mixed — assessed  for  taxes  due 
the  state,  county,  and  municipalities  in  the  county  —  — . 

It  appearing  to  the  satisfaction  of  the  court  that  the  trustee  for 
County,  in  the  State  of  Tennessee,  has  filed  lists  of 


sales  of  property  in  said  county  delinquent  for  taxes  due  thereon,  for 
the  year  —  —  and  —  —  years  prior  thereto,  to  the  state,  county, 
and  municipalities  in  said  county;  it  further  appearing  to  the  court 
that  the  treasurer,  for  use  of  the  state,  etc.,  and  various  individuals 
and  corporations  have  become  purchasers  of  specific  portions  of  the 
property  as  described  and  set  out  in  said  list;  it  is,  therefore,  decreed 
by  the  court  that  such  sales  be  confirmed,  and  that  all  rights,  title,  in- 
terest, and  estate  of  any  kind  and  character  pertaining  to  said  prop- 
erty, or  any  parcel  or  portion  thereof,  is  hereby  vested  in  the  respective 
purchasers  as  shown  by  said  lists,  subject  alone,  however,  to  the  right 
of  redemption  given  by  the  terms  of  the  act  under  which  such  sales 
were  made. 

(2)  The  clerk  of  this  court  will,  upon  the  payment  of  the  legal  fees 
therefor,  issue  to  any  purchasers  named  in  said  Jists  a  writ  of  posses- 
sion to  put  such  purchaser  in  possession  of  the  property  purchased; 
provided,  that  said  writ  shall  not  issue  before  the  expiration  of  two 
years  from  the  date  of  sale,  and  that  such  writs  shall  be  subject  to  the 
rights  of  tenants  as  heretofore  defined  in  this  act. 

(3)  It  shall  also  be  the  duty  of  the  circuit  court  on  any  day  of  any 
term  hereafter,  on  the  motion  of  any  purchaser  named  in  the  lists  of 
lands  sold  for  taxes  under  the  provisions  of  chapter  1  of  the  acts  of  the 
fiftieth  general  assembly,  approved  April  30,  1897,  or  subsequent  acts,  on 
file  and  constituting  a  part  of  the  record  of  such  court,  or  upon  the  mo- 
tion of  any  trustee  or  revenue  collector,  to  enter  a  decree  in  about  the 
form  hereinabove  set  out,  confirming  the  sales  of  said  lists,  except  that 
the  writs  of  possession  shall  be  decreed  to  issue  on  compliance  with  the 
provisions  of  section  65  of  this  act. 

(4)  No  writ  of  possession  shall  be  issued  by  the  clerk  under  this  act 
unless  the  court  shall  have  first  ordered  a  writ  of  possession. 

(5)  This   provision  shall  apply  to   all  sales  heretofore  made   and 
hereafter  to  be  made  to  individuals  and  to  the  treasurer  of  the  state  or 
to  any  company  or  corporation. 

90 


COMMITTEE  ox  TAXATION. 

(6)  The  respective  circuit  courts  of  this  state  are  vested  with  the 
authority  to  render  judgments,  decrees,  and  order  writs  of  possession 
for  the  purposes  declared  in  this  act. 

(7)  The  comptroller  is  hereby  authorized  to  take  the  necessary  steps 
to  put  the  state  in  possession  of  said  property  and  to  dispose  of  the 
same  to  the  best  advantage  to  the  state,  either  by  compromise  or  by 
sale,  on  approval  of  the  Governor  and  attorney-general. 

SECTION  58.  Be  it  further  enacted.  That  if  any  individual  purchaser 
shall  allow  any  land  purchased  by  him  to  be  again  sold  for  taxes  and 
purchased  by  another  individual  purchaser,  then  such  subsequent  indi- 
vidual purchaser  shall  acquire  the  superior  title,  and  the  title  of  the 
first  purchaser  shall  become  null  and  void  as  against  the  title  and  claim 
of  such  subsequent  purchaser. 

SECTION  59.  Be  it  further  enacted.  That  if  the  purchaser  of  land  at 
a  tax  sale  shall  not  immediately  pay  the  amount  of  his  bid,  the  trustee 
shall  offer  the  land  again;  and  if  some  person  will  not  then  bid  the 
amount  of  taxes,  interest,  costs,  and  charges  upon  it,  it  shall  be  struck 
off  to  the  state  treasurer  as  in  other  cases. 

SECTION  60.  Be  it  further  enacted.  That  if  any  land  be  sold  for  more 
than  the  amount  of  taxes  due  thereon  and  all  costs,  interest,  and 
charges,  the  excess  shall  be  paid  over  by  said  trustee  to  the  clerk  of  the 
circuit  court  at  the  same  time  that  he  shall  file  with  said  clerk  the  list 
of  land  struck  off  to  the  treasurer  and  to  individuals, --  taking  his 
receipt  for  the  same,  and  said  excess  to  remain  in  the  hands  of  said 
circuit  court  clerk  until  the  land  is  redeemed  or  until  the  period  of  re- 
demption shall  have  expired;  and  if  said  land  is  redeemed,  said  excess 
shall  be  by  the  clerk  paid  to  the  bidder  or  purchaser,  his  representa- 
tives or  assigns;  and  if  the  land  be  not  redeemed,  then  the  same  shall 
be  paid  by  said  clerk  to  the  person  who  owned  the  land  at  the  time  of 
the  tax  sale,  his  heirs  or  assigns;  and  the  said  clerk  and  his  bondsmen, 
as  the  case  may  be,  shall,  respectively,  be  liable  for  the  safe-keeping 
and  disposition  of  said  excess  in  accordance  with  the  provisions  of  this 
act. 

SECTION  61.  Be  it  further  enacted.  That  on  the  payment  of  the  re- 
demption money,  the  clerk  shall,  on  the  record  of  the  list  of  lands 
struck  off  to  the  treasurer  and  the  list  of  lands  to  individuals,  respec- 
tively, write  opposite  the  tract  of  land  the  word  "  Redeemed,"  and  with 
the  date  of  payment  and  redemption,  the  person  redeeming,  and  the 
amount  paid,  so  as  to  show  the  amount  paid  on  account  of  taxes  accrued 
since  the  sale;  and  the  said  clerk  shall  be  liable  on  his  official  bond 
for  any  and  all  moneys  collected  under  this  act,  and  shall  pay  over  the 
amount  received  by  him  on  redemption  to  the  persons  entitled  to  re- 
ceive the  same. 

SECTION  62.  Be  it  further  enacted.  That — 

(1)  At  any  time  after  the  sale  of  land  for  taxes,  the  lands,  or  any 
part  thereof,  struck  off  to  the  treasurer  and  reported  to  the  circuit  court 
clerk  as  herein  provided,  may  be  sold  at  private  sale  by  said  clerk  to 
any  one  desiring  to  purchase  the  same  for  not  less  than  the  taxes,  in- 
terest, penalties,  and  costs  due  thereon  to  the  date  of  such  sale;   and 
such  purchaser  shall  take  the  same,  with  all  the  rights  and  subject  to 
all  the  redemption  rights,  the  same  as  if  he  had  become  purchaser  at 
trustee's  sale. 

(2)  After  the  time  for  the  redemption  of  any  tract  of  land  sold  for 
taxes  shall  have  expired,  any  person  shall  be  entitled  to  receive  from 

91 


COMMITTEE  ox  TAXATION. 

the  clerk  of  the  circuit  court  a  conveyance  of  the  title  vested  in  the 
treasurer  of  the  state  for  the  uses  aforesaid  upon  the  payment  to  said 
clerk  of  the  whole  amount  of  taxes,  interest,  and  penalties  for  which  the 
land  was  sold,  and  all  costs,  interest,  and  charges  consequent  upon  such 
sale,  with  interest  at  six  per  centum  per  annum  and  one  per  centum  per 
month  penalty  from  date  of  sale  upon  the  amount  for  which  said  land 
was  sold,  and  also  all  state,  county,  and  municipal  taxes,  interest,  and 
penalties  which  shall  have  accrued  on  the  land  since  the  said  sale,  with 
interest  thereon,  together  with  five  per  centum  on  the  whole  amount 
of  the  purchase  money  and  fifty  cents  for  making  the  deed  for  com- 
pensation for  the  clerk,  which  conveyance  shall  vest  in  him  a  good  and 
indefeasible  title  to  said  land. 

(3)   The  form  of  said  deed  shall  be  to  the  following  effect: 
"  I,  —  — ,  clerk  of  the  circuit  court  of  - 

County,  State  of  Tennessee,  in  consideration  of  the  sum  of  $ 

paid  to  me  by  —  — ,  hereby  convey  to  said 


the  following-described  lands,  situated  in  said  county — to  wit  [here  de- 
scribe the  land],  sold  to  the  treasurer  of  the  state  for  delinquent  taxes 
on  property  assessed  to  -  — ,  for  the  year  -  — ,  on  the 

-  day  of ,  A.D. .     The  time  of  re- 
demption having  expired,  this  conveyance  is  made  pursuant  to  the  au- 
thority vested  in  me  by  law. 

"  Witness  my  hand  and  seal  of  said  court  hereunto  affixed,  this  — 

-  day  of  -  ,  A.D. . 


-,  Clerk." 


(4)  The  deed  made  by  the  clerk  as  above  provided  shall  be  prima 
facie  evidence  of  the  facts  stated  in  the  deed. 

(5)  The  said  seal  of  the  circuit  court  clerk  shall  be  a  sufficient  au- 
thentication, and  entitle  the  same  to  registration  without  any  acknowl- 
edgment. 

(6)  If  the  clerk  shall  have  knowledge  or  reason  to  believe  that  more 
than  one  person  desires  a  deed  to  any  tract  of  land,  he  shall  notify  all 
such  persons  that  he  will,  on  a  certain  day,  sell  said  land  to  the  high- 
est bidder;   and  the  excess  so  paid  shall  be  distributed  to  the  state, 
county,  and  municipality  in  the  proportion  that  each  may  be  interested 
in  the  land  sold. 

(7)  A  writ  of  possession  shall  be  ordered  by  the  circuit  court   (to 
which  the  tax  sale  has  been  certified)  upon  application  of  any  purchaser 
under  this  section. 

SECTION  63.    Be  it  further  enacted,  That — 

(1)  Any  person  who  has  purchased  any  real  estate  at  a  sale  held 
by  a  back-tax  attorney,  under  the  provisions  of  chapter  120   of  the 
acts  of  1895,  and  who  has  received  from  said  back-tax  attorney  a  cer- 
tificate of  purchase,  as  provided  in  said  act,  and  from  whom  said  real 
estate  has  not  been  redeemed  within  the  time  required  by  law,  may 
apply  to  the  circuit  court  clerk  of  the  county  in  which  said  real  estate 
was  sold  for  a  deed;  and  if  it  shall  be  made  to  appear  to  the  satisfac- 
tion of  the  said  clerk  that  said  real  estate  has  not  been  redeemed  from 
the  party  holding  the  certificate  of  purchase,  it  shall  be  the  duty  of  said 
clerk  to  issue  to  said  purchaser  a  deed  in  the  same  manner  as  pro- 
vided in  section  64  of  this  act. 

(2)  The  circuit  court  clerk  shall  at  any  time,  not  later  than  six  months 
after  the  right  of  redemption  shall  have  expired  on  any  property  that 
has  been  sold  for  taxes  under  this  act  by  the  trustee  and  struck  off  to 
the  treasurer  of  the  state  and  not  otherwise  disposed  of,  advertise  and 
resell  all  such  property  under  the  same  rule  and  same  notice  that  the 

92 


COMMITTEE  ox  TAXATION. 

trustee  sold  under  in  the  beginning,  except  that  he  shall  state  in  his 
notice  that  the  sales  will  be  made  in  bar  of  the  equity  of  redemption. 

SECTION  64.   Be  it  further  enacted.  That — 

(1)  After  the  time  for  redemption  of  any  tract  of  land  sold  for  taxes 
to  individuals  shall  have  expired,  any  purchaser  shall  be  entitled  to 
receive  from  the  clerk  of  the  circuit  court  a  conveyance  of  the  property 
so  purchased,  upon  payment  to  the  clerk  of  the  sum  of  fifty   cents, 
which  shall  be  the  clerk's  compensation  for  making  and  delivering  said 
conveyance. 

(2)  The  form  of  said  deed  shall  be,  in  effect,  as  follows: 
"  State  of  Tennessee,  County  of  -  — ,  ss. 

"  Be  it  known  that  -  — ,  the  county  trustee  of  said 

county  of  -  — ,  did,  on  the  —  -  day  of  -  , 

A.D.  -      — ,  according  to  law,  sell  the  following  land,  situated  in  said 
county,  assessed  to  -  — ,  to  wit  [here  describe  the  land], 

for  the  taxes  assessed  thereon  for  the  year  -         -  [if  sold  for  other 
taxes,  it  shall  be  so  stated],  when  -  -  became  the  best 

bidder  therefor  and  the  purchaser  thereof  at  the  sum  of  $ — 
and  -  -  cents;   and  the  time  for  redemption  having  expired, 

I,  -  — ,  clerk  of  the  circuit  court  of  said  county,  by  vir- 

tue of  the  authority  vested  in  me  by  law,  hereby  convey  eaid  land  to 


"  Witness   my   hand  and   seal   of   said   court   hereunto   affixed,   this 

—  day  of . 

,  Clerk." 

(3)  Said  seal  of  the  circuit  court  clerk  shall  be  sufficient  authentica- 
tion and  entitle  the  same  to  registration  without  acknowledgment. 

(4)  Said  conveyance,  as  well  as  the  conveyance  provided  for  in  sec- 
tion 62,  shall  be  an  assurance  of  perfect  title  to  the  purchaser  of  said 
land,  and  no  such  conveyance  shall  be  invalidated  in  any  court  except 
by  proof  that  the  land  was  not  liable  to  sale  for  taxes  or  that  the. taxes 
for  which  the  land  was  sold  had  been  paid  before  said  sale;  and  if  any 
part  of  the  taxes  for  which  said  land  was  sold  is  illegal  or  not  charged 
to  it,  but  a  part  is  chargeable,  that  shall  not  affect  the  sale  nor  invali- 
date the  conveyance  thereunder,  unless  it  appears  that  before  the  sale 
the  amount  legally  chargeable  on  the  land  was  paid  or  tendered  to  the 
county  trustee;   and  no  other  objection,  either  in  form  or  substance, 
to  the  sale  or  the  title  thereunder  shall  avail  in  any  controversy  in- 
volving them. 

(5)  No  suit  shall  be  commenced  in  any  court  of  the  state  to  invali- 
date any  tax  title  to  land  after  three  years  from  the  time  said  land, 
was  sold  for  taxes,  except  in  case  of  persons  under  disability,  who  shall 
have  one  year  in  which  to  bring  suit  after  such  disability  is  removed. 

(6)  No  suit  shall  be  commenced  in  any  court  of  the  state  to  invali- 
date any  tax  title  to  land  until  the  party  suing  shall  have  paid  or  ten- 
dered to  the  clerk  of  the  court  where  the  suit  is  brought  the  amount 
of  the  bid  and  all  taxes  subsequently  accrued,  with  interest  and  charges 
as  herein  provided. 

(7)  A  writ  of  possession  shall,  upon  application  of  the  purchaser, 
included  in  this  section,  be  ordered  by  the  court  to  which  the  tax  sale 
has  been  certified. 

(8)  The  circuit  court  clerk  shall  not  make  deed  for  land  struck  off 
to  the  treasurer  or  sold  to  individuals  until  the  circuit  court  clerk 
shall  issue  a  notice  as  hereafter  provided  and  have  served  on  the  per- 
son to  whom  said  real  estate  was  assessed,  if  to  be  found;  if  not,  to  his 
agent  or  representative  or  attorney;  and  if  no  such  agent  or  representa- 
tive or  attorney  can  be  found,  the  clerk  shall  make  publication  for  four 

93 


COMMITTEE  ox  TAXATION. 

consecutive  weeks  in  any  newspaper  published  in  the  county  where  the 
land  is  situated;  or  in  case  there  is  no  paper  in  said  county,  he  shall 
make  publication  in  the  nearest  county  paper  for  the  person  or  per- 
sons who  own  said  lands  or  to  whom  same  is  listed,  specifying  that  un- 
less said  property  owner  or  his  agent  or  attorney  or  representative  ap- 
pear on  or  before  a  certain  day  at  least  sixty  days  from  the  service  of 
said  notice  or  from  the  last  publication  and  redeem  said  land  or  lands 
by  paying  all  accrued  taxes  —  state,  county,  municipal,  etc.  —  together 
with  interest,  penalty,  and  costs  accrued  to  date  of  redemption,  that 
the  sale  of  said  lands  to  the  purchaser  thereof  shall  become  absolute; 
and  the  circuit  clerk  shall  proceed  forthwith  to  execute  a  deed  to  said 
lands  to  the  purchaser  aforesaid,  who  will  pay  to  said  clerk  the  whole 
amount  of  taxes,  interest,  and  penalties  for  which  the  land  was  sold, 
and  all  the  costs,  interest,  and  charges  consequent  upon  the  sale,  with 
interest  at  six  per  centum  per  annum  and  one  per  centum  per  month 
penalty  from  date  of  sale  upon  the  amount  for  which  said  land  was 
sold;  and  also  all  state,  county,  and  municipal  taxes,  interest,  and  pen- 
alties which  have  accrued  on  the  land  since  the  said  sale,  with  interest 
thereon,  together  with  five  per  centum  on  the  whole  amount  of  the 
purchase  money,  together  with  the  costs  of  the  notice  of  publication 
heretofore  provided  for  and  a  fee  of  one  dollar  to  the  clerk  for  making 
the  deed.  But  failure  to  give  the  notice  required  hereby  shall  not  af- 
fect or  render  void  the  title. 

(9)  FORM  OF  NOTICE. 


"As  the  owner  [or  as  the  agent  or  attorney  of  the  owner,  as  the  case 
may  be]  of  -  —  acres  of  land  situated  in  the  — 

district  of  -  —  -  County,  Tennessee,  and  bounded   on  the 

north  by  -  —  ,  on  the  east  by  -  —  ,  on  the 

south  by  -  —  ,  and  on  the  west  by  -  -  [or  if 

town  lots  or  city  property,  describe  by  usual  method  of  describing  such 
property],  you  are  hereby  notified  that  unless  you  appear  at  my  office 
in  the  courthouse  in  the  town  of  -  —  ,  Tennessee,  on  or 

before  the  -  -  day  of  -  —  ,  19  --  [giving  sixty 

days'  notice],  and  pay  the  sum  of  $  —  —  ,  state,  county,  and  all 

other  taxes  assessed  against  said  lands,  together  with  all  interest  and 
costs  incurred,  including  this  notice  of  publication  as  now  provided  by 
law,  your  right  to  redeem  same  shall  be  forever  barred,  and  deed  to 
the  same  will  be  at  once  executed  by  me  to  -  —  ,  the  pur- 

chaser of  said  lands. 

"  Witness  my  hand  at  —  —  office  on  this  —  —  day  of 

--  ,  19  -  . 

—  ,  Circuit  Court  Clerk." 

(10)  The  above  notice  may  be  served  by  any  county  or  district  of- 
ficer authorized  to  serve  process. 

(11)  The  form  of  public  notice  heretofore  provided  for  shall  be  suffi- 
cient, if  a  substantial  compliance  with  the  above  notice;  and  any  num- 
ber of  property  owners  may  be  embraced  in  one  publication,  the  ex- 
penses for  the  same  to  be  prorated  among  them. 

SECTION  65.    Be  it  further  enacted,  That  — 

(1)  Upon  the  request  of  any  person  who  has  or  may  become  the 
purchaser  of  any  property  which  has  been  sold  for  taxes  due  thereon 
under  the  provisions  of  chapter  1  of  the  acts  of  the  fiftieth  general 
assembly,  approved  April  30,  1897,  and  any  subsequent  acts,  or  to  whom 
a  deed  has  been  executed  under  the  provisions  of  said  acts,  the  clerk 
shall,  upon  the  order  of  the  court  and  upon  payment  of  the  legal  fees 
thereof,  issue  to  such  purchaser  a  writ  of  possession  directing  the 

94 


COMMITTKK    ON    TAXATION. 

sheriff  to  put  such  person  in  possession  of  the  property  so  purchased 
or  described  in  such  deed. 

(2)  However,  before  such  writ  of  possession  is  issued,  the  purchaser 
shall  make  out  a  notice  to  the  party  in  possession,  giving  a  description 
of  the  property  and  the  fact  of  his  purchase  at  tax  sale,  or  under  the 
provisions  of  said  acts,  the  time  of  purchase,  and  stating  that  he  will 
not  earlier  than  thirty  days  thereafter  apply  to  the  judge  of  the  circuit 
court  for  a  writ  of  possession  to  put  him  in  possession  of  said  land. 

(3)  Which  notice  shall  be  served  by  the  sheriff  or  deputy  sheriff  or 
constable  on  the  party  or  parties  in  possession;  and  if  no  one  is  on  the 
premises  at  the  time  the  officer  is  there,  it  shall  be  sufficient  service  to 
leave  a  copy  of  said  notice  tacked  to  the  house  or  other  place  where  it 
can  be  easily  seen.    The  officer's  return  shall  be  sufficient  evidence  to  the 
clerk  that  such  notice  has  been  served. 

(4)  If  the  party  in  possession  is  a  tenant  of  the  original  owner  and 
has  paid  his  rent  in  advance  or  has  given  his  written  obligation  for 
the  payment  of  such  rents,  and  such  written  obligation  is  legally  held 
or  owned  by  third  parties,  such  party  shall  have  the  right  to  become 
the  tenant  of  the  purchaser  at  tax  sale  without  rent  until  the  expiration 
of  the  time  for  which  he  has  paid  in  advance,  or  until  the  expiration  of 
his  written  contract. 

SECTION  66.   Be  it  further  enacted,  That — 

(1)  It  shall  be  the  duty  of  the  clerk  of  the  circuit  court,  on  or  be- 
fore the  tenth  day  of  each  month,  to  report  and  pay  over  to  the  au- 
thorities— state,  county,  and   municipal,  respectively — entitled  thereto 
all  taxes  collected  by  him  on  redemption  and  purchases  as  herein  pro- 
vided during  the  preceding  month ;  and  if  he  fail  to  do  so,  he  shall  be 
liable  on  his  official  bond  for  amount  collected  and  to  a  penalty  thereon 
of  one  per  centum  per  day  on  the  amounts  so  held  or  retained. 

(2)  Said  report  shall  show  the  name  assessed  to,  the  description  of 
the  property,  the  amount  paid  in  redemption,  and  name  of  party  re- 
deeming or  purchasing. 

(3)  Whereupon  the  trustee  and  the  collector  of  municipal  taxes,  if 
such  taxes  are  collected   separately,   shall   enter  the   fact  of  such   re- 
demption or  purchase  on  the  original  tax  duplicate  opposite  the  original 
assessment,  and  the  further  fact  of  redemption  by  owner  or  creditor  or 
sale  by  the  clerk  to  a  purchaser. 

SECTION  67.   Be  it  furtJier  enacted.  That— 

(1)  Any  person  claiming  or  owning  an  undivided  interest  or  part 
in  any  property  or  any  specific  portion  of  any  property  assessed  to 
another  shall  receive  a  receipt  in  full  for  his  taxes  on  paying  such  por- 
tion of  the  taxes  as  he  claims  of  the  property  or  such  proportion  of  the 
taxes  as  his  quantity  of  the  property  bears  to  the  whole  quantity  taxed. 

(2)  Before  issuing  his  receipt  in  full  on  any  specific  portion  of  such 
property,  the  trustee  shall  satisfy  himself  that  the  value  placed  en  each 
portion  is  a  correct  relative  valuation,  either  by  agreement  of  the  par- 
ties in  interest  or  the  certificate  of  the  assessor  that  he  has  fixed  the 
valuation  of  said  portion. 

(3)  This  rule  shall  apply  to  all  taxes,  interest,  penalties,  and  costs 
that  have  or  may  become  a  lien  on  any  property  in  the  hands  of  the 
trustee  for  collection  or  of  the  circuit  court  clerk  for  redemption  from 
tax  sale. 

SECTION  68.   Be  it  further  enacted,  That — 

(1)  On  or  before  the  tenth  day  in  each  month  the  trustee  shall  re- 
port to  and  make  settlement  for  all  taxes  collected  during  the  preced- 
ing month  with  the  comptroller  of  the  state  and  with  the  judge  or 

95 


COMMITTEE  ON  TAXATION. 

chairman  of  the  county  court  and  with  the  financial  agent  or  treasurer 
of  each  municipality,  and  pay  over  to  the  same  the  amounts  shown  by 
the  respective  settlements  to  be  due  each. 

(2)  The  trustee  shall  make  under  oath  a  full  and  complete  state- 
ment on  the  first  Monday  of  September  in  each  and  every  year  of  the 
condition  of  his  office,  setting  out  the  aggregate  amount  of  taxes  col- 
lected, the  amount  so  collected,  giving  state,   county,  and  municipal 
taxes  separately,  and  a  full  statement  of  the  disbursements  of  the  same 
and  purposes  for  which  disbursed  and  the  amount  on  hand,  and  shall 
cause  the  same  to  be  published  in  a  newspaper  published  in  said  county; 
and  if  no  paper  is  published  in  said  county,  shall  cause  the  same  to  be 
published  in  the  paper  nearest  to  the  county  seat,  to  be  paid  for  by  the 
county. 

(3)  Said  trustee  shall  not  be  allowed  any  commission  when  he  fails 
to  make  such  publication;   and  in  the  event  commissions  are  allowed 
when  said  publication  is  not  made,  any  citizen  and  taxpayer  of  said 
county  may  bring  suit  against  said  trustee  and  his  bondsmen  and  re- 
cover for  the  use  of  the  state  and  county  all  commissions  thus  ille- 
gally paid  or  allowed. 

(4)  Said  monthly  settlements  so  to  be  made  to  said  judge  or  chair- 
man and  committee  of  court  shall  be  spread  upon  the  minutes  of  the 
court   and   municipality,   respectively,   and   shall   specify   every   credit 
allowed  said  officers  for  errors,  removals,  double  taxation,  and   such 
other  credits  as  are  now  allowed  by  law,  except  compensation  to  trustee. 

SECTION  69.   Be  it  further  enacted,  That — 

(1)  Annually,  at  the  July  term  of  the  county  court,  the  trustee  shall 
present  to  said  court  a  report  of  all  insolvent  and  delinquent  taxpayers 
and  double  assessments  in  his  county,  with  the  amount  due  from  each, 
which  report  shall  be  verified  by  the  affidavit  of  the  trustee  that  he  has 
made  in  person  or  by  deputy  a  legal  demand  for  taxes  of  all  delinquent 
taxpayers  found  in  his  county  by  going  to  their  places  of  abode  or  busi- 
ness and  searching  for  something  to  seize  or  sell  for  taxes;  that  the  tax- 
payers mentioned  in  the  report  have  failed  to  pay  their  taxes  and  have 
no  effects  known  to  him  which  can  be  made  to  pay  the  same;  and  that 
he  has  made  diligent  inquiry  as  to  such  delinquents  as  have  not  been 
found  and  cannot  find  them  in  his  county,  and  they  have  no  effects 
known  to  him  which  can  be  made  to  pay  their  taxes. 

(2)  The  county  court  shall  proceed  to  examine  said  report,  and  shall 
allow  the  trustee  a  credit  for  such  taxes  so  reported  insolvent  or  delin- 
quent and  double  assessments,  as  it  may  be  satisfied  remain  uncollected 
without  the  default  of  the  trustee,  and  no  more. 

(3)  And  a  list  of  such  allowances  shall  be  made  out  and  certified  by 
the  clerk  of  the  county  court  and  transmitted  to  the  proper  authorities 
of  the  state,  county,  and  municipality,  respectively. 

(4)  Said  report  shall  be  spread  upon  the  minutes  of  the  county  court 
and  of  the  council  or  other  governing  body  of  the  municipality,  re- 
spectively. 

(5)  The  county  court  shall  not  allow  the  trustee  a  credit  for  the 
insolvent  list  that  he  reports  merely  because  he  presents  it  duly  sworn 
to;  but  the  court  shall  examine  carefully  each  credit  claimed  by  the 
trustee  and  avail  themselves  of  any  information  by  witnesses  to  test 
the  accuracy  of  the  report,  and  shall  not  allow,  the  trustee  credit  for  the 
taxes  of  any  delinquent  who  may  be  ascertained  to  have  anything  in 
his  possession  or  any  right  of  action,  by  a  sale  of  which  the  trustee 
would  be  able  to  make  the  taxes. 

(6)  All  the  lists  for  which  the  court  shall  not  allow  a  credit  shall 
be  charged  against  the  trustee;   and  notwithstanding  that  the  county 

96 


COMMITTEE  ON  TAXATION. 

court  may  have  allowed  the  trustee  credits,  such  acts  shall  not  operate 
as  an  estoppel  in  the  event  that  it  should  afterwards  appear  that  such 
credit  was  improperly  allowed. 

(7)  The  trustee  shall  retain  the  poll  taxes  included  in  his  list  of 
insolvencies  and  for  which  credit  is  allowed  him  as  a  charge  against 
the  taxpayers  who  have  not  paid  the  same,  and  at  any  same  time  he  may 
receive  payment  thereof  in  person  or  through  any  deputy  appointed 
hy  him;  and  he  shall  distrain  and  sell  for  such  taxes,  where  there  is 
any  probability  of  collecting  the  same  in  person  or  by  deputy  appointed 
for  that  purpose,  any  property  of  such  poll  taxpayers  and  sell  the  same 
for  payment  thereof,  and  all  collections  of  poll  taxes  so  made  shall  be 
reported  by  him  and  accounted  for  in  his  next  settlement  made  after  the 
collection  of  the  same. 

(8)  For  such  collections,  when  made  by  distraint  or  sale,  he  shall 
be  entitled  to  the  fees  heretofore  allowed  in  such  cases.     This  section 
shall  not  be  construed  as  in  any  way  affecting  section  49  of  this  act. 

SECTION  70.   Be  it  further  enacted.  That — 

(1)  Each  trustee  shall,  on  or  before  the  first  Monday  in  September 
of  each  and  every  year,  submit  the  statement  hereinbefore  provided 
for — in  case  of  all  state  revenue  collected  by  him,  to  the  comptroller; 
and  in  case  of  all  county  revenue  collected  by  him,  to  the  county  judge 
or  chairman  of  the  county  court;    and   for  any  municipality,  to  the 
mayor  or  proper  officer  of  said  municipality,  for  the  purpose  of  making 
final  settlement  with  said  officer  and  accounting  for  all  taxes,  damages, 
penalties,  fines,  interest,  and  other  revenue  collected  by  him;  and  said 
trustee  shall  be  allowed  the  credits  herein  provided  for,  and  none  other. 

(2)  It  shall  be  the  duty  of  the  county  judge  or  chairman  of  the 
county  court  to  submit  a  copy  of  this  settlement,  showing  all  debits 
and  credits,  to  the  county  court  at  the  following  term  for  inspection, 
which  shall  be  entered  upon  the  minutes  of  the  court. 

SECTION  71.   Be  it  further  enacted,  That — 

(1)  Any  and  all  parties  intrusted  with  the  collection  and  disburse- 
ment of  public  funds  or  revenue  violating  the  provisions  of  this  act, 
upon  whom  no  penalty  has  been  heretofore  imposed  for  so  doing,  shall 
be  guilty  of  a  misdemeanor,  and,  upon  conviction  thereof,  shall  forfeit 
and  pay  to  the  state  not  less  than  fifty  dollars  nor  more  than  five  hun- 
dred dollars,  which  shall  be  placed  in  the  treasury  for  the  benefit  of  the 
public-school  fund. 

(2)  And  where  such  trustee  or  other  officer,  whose  duty  it  is  to  col- 
lect any  taxes  under  the  provisions  of  this  act,  fails  to  pay  over  and 
account  for  any  and  all  taxes  which  they  have  collected  to  the  proper 
officer,  in  addition  to  the  above  penalty  they  shall  be  liable  to  a  pen- 
alty of  one  per  centum  per  day  on  the  same  from  the  time  the  same 
should  have  been  paid,  none  of  which  shall  in  any  way  be  remitted  after 
the  matter  is  placed  in  the  hands  of  the  attorney;  and  they  shall,  in  ad- 
dition, forfeit  their  respective  offices. 

(3)  A  motion  or  suit  lies  in  favor  of  the  state,  county,  or  municipal- 
ity against  the  trustee  and  his  sureties  on  his  official  bonds  for  any 
moneys  in  his  hands  officially  not  paid  over  or  accounted  for  according 
to  law  or  for  failure  to  collect. 

(4)  The  motion  or  suit  in  favor  of  the  state  may  be  brought  in  the 
name  of  the  state,  and  shall  be  made  or  brought  by  the  district  attorney 
of  the  circuit  or  district  where  it  is  instituted  upon  direction  of  the 
comptroller  or  treasurer  or  the  commission. 

(5)  The  motion  or  suit  by  the  county  may  be  brought  in  the  name 
of  the  state,  for  the  use  of  the  county,  by  the  district  attorney  or  by 
counsel  employed  for  that  purpose. 

97 


COMMITTEE  ox  TAXATION. 

(6)  A  motion  or  suit  in  favor  of  the  municipality  may  be  brought  in 
the  name  of  the  state,  for  the  use  of  such  municipality,  by  the  mayor 
thereof  or  the  city  attorney. 

(7)  In  each  case  the  counsel  making  the  motion  and  conducting  the 
suit  shall  be  allowed  fifteen  per  centum  on  the  recovery  as  compensa- 
tion as  hereinafter  fixed,  to  be  added  to  and  become  a  part  of  the  judg- 
ment. 

(8)  The  fees  allowed  to  the  counsel  for  the  county  shall  be  collected 
by  the  counsel  for  the  county  and  reported  to  the  county  judge  or  chair- 
man. 

(9)  The  fees  allowed  to  the  city  attorney  shall  be  collected  by  said 
city  attorney  and  reported  to  the  mayor  of  the  city  or  other  chief  offi- 
cial. 

(10)  In   case   the   county  judge   or  chairman   of  the   county   court 
should  refuse  to  make  the  motion  or  bring  the  suit  hereinbefore  pro- 
vided for  after  receiving  the  written  request  of  any  taxpayer  to  do  so, 
then  any  taxpayer  of  the  county  may  make  such  motion  or  bring  suir 
in  the  name  of  the  state  for  the  use  of  the  county  and  employ  counsel  to 
conduct  the  cause;  but  before  making  such  motion  or  bringing  suit,  he 
shall  obtain  leave  of  the  judge  of  the  court  in  which  the  motion  is  to  be 
made  or  the  suit  brought  to  do  so.     He  shall  make  such  application  in 
writing,  stating  fully  the  grounds  therefor,  of  which  application  the 
county  judge  or  chairman  of  the  county  court  shall  have  five  days' 
written  notice,  stating  time  and  place  of  application.     The  judge  shall 
hear  the  application  at  chambers  or  in  term  time,  and  may  adjudge  the 
costs  of  the  application  against  the  applicant,  against  the  county  judge 
or  chairman,  or  against  the  county  as  he  shall  deem  just,  and  he  shall 
enter  judgment  upon  the  record  of  his  court  accordingly. 

(11)  No  power  shall  exist  either  in  the  court  or  any  other  official 
to  release  any  officer  charged  with  the  collection  of  revenue  or  his  sure- 
ties from  the  payment  of  any  revenue,  penalties,  or  fees  wrhich  he  or 
they  may  be  liable  for. 

SECTION  72.   Be  it  further  enacted,  That — 

(1)  In  all  instances  in  which  current  municipal  taxes  are  collected 
by  the  county  trustee,  the  same  provisions  and  rules  for  the  collection 
of  delinquent  taxes  that  may  be  due  to  the  state  and  county,  and  none 
other,  shall  prevail  and  obtain. 

(2)  No  distinct  or  independent  sales  by  the  trustee  shall  be  made  of 
the  property  upon  which  the  ^said  municipal  taxes  shall  become  delin- 
quent, but  in  respect  of  all  municipal  taxes  the  trustee  shall  sell  there- 
for at  the  same  time,  under  the  same  advertisement,  and  under  all  the 
proceedings  here  provided  for,  at  the  next  sale  thereafter  to  be  made  for 
delinquent  state  and  county  taxes,  such  next  sale  to  be  made  for  all 
taxes,   except  as  hereinafter  provided,  then   delinquent  to   the   state, 
county,  and  municipality. 

SECTION  73.  Be  it  further  enacted,  That  all  persons  who  shall  buy 
any  real  estate  sold  under  any  provisions  of  this  act  for  delinquent 
taxes  which  were  a  lien  thereon,  and  who  shall  from  any  cause  fail  to 
get  a  good  title  or  to  recover  possession  of  the  realty,  shall  be  subro- 
gated  to  all  liens  that  secured  the  taxes,  and  all  costs,  penalties,  fees, 
and  interest,  and  shall  have  the  right  to  enforce  such  liens  by  bill  in 
chancery  and  sale  of  the  property  for  reimbursement  of  the  purchase 
money  and  interest  thereon;  and  all  persons  who  have  purchased  or 
shall  hereafter  purchase  realty  sold  for  taxes  under  chapter  1,  Acts  of 
1897,  or  under  chapter  435,  Acts  of  1899,  or  under  chapter  602,  Acts  of 
1907,  are  entitled  to  the  same  right  or  subrogation  and  the  same  rem- 
edy for  its  enforcement;  and  the  chancery  court  shall  have  jurisdiction 
in  all  such  cases,  though  the  amount  sued  for  be  less  than  fifty  dollars. 


COMMITTED  ox  TAXATION. 

Any  person  who  shall  purchase  real  estate  sold  for  delinquent  taxes 
from  a  trustee  or  by  redemption  through  the  circuit  court  clerk  may 
sue  for  possession  by  bill  in  the  chancery  court,  and  may  file  his  bill  in 
a  double  aspect,  seeking  to  recover  possession;  or  if  that  relief  is  de- 
nied, then  to  enforce  the  right  of  subrogation  as  aforesaid,  and  the 
purchaser  may  avail  himself  of  this  remedy  by  bill  in  chancery  with- 
out having  taken  any  steps  toward  a  confirmation  in  the  circuit  court 
or  a  writ  of  possession  therefrom;  or  if  he  shall  have  taken  any  such 
steps,  he  may,  nevertheless,  maintain  his  bill  as  aforesaid;  and  in  the 
event  of  his  failure  to  recover  the  realty,  then  he  shall  have  a  lien 
therefrom  for  the  amount  he  paid  for  the  same,  with  interest  and  costs, 
and  his  reasonable  attorney  fees,  to  be  fixed  by  the  court,  and  shall  be 
entitled  to  a  decree  for  the  sale  of  the  realty  to  satisfy  such  lien;  and 
in  all  such  cases  the  chancery  court  shall  have  jurisdiction,  whether  the 
amount  sued  for  be  more  or  less  than  fifty  dollars. 

SECTION  74.   Be  it  further  enacted.  That — 

(1)  The  quarterly  courts,  at  their  July  term,  1915,  and  each  year 
thereafter,  shall  elect  three  competent  citizens,  not  members  of  the 
county  court,  county  court  clerk,  or  deputy  county  court  clerk,  who 
shall  be  known  as  the  "  revenue  commissioners  "  of  the  county.     One 
of  these  commissioners  shall  be  an  expert  accountant,  and   shall   be 
selected  as  such. 

(2)  Their  term  of  office  shall  begin  on  the  first  Monday  in  Septem- 
ber following  their  election,  and  they  shall  hold  office  for  two  years  and 
until  their  successors  are  elected  and  qualified. 

(3)  Before  entering  upon  their  duties,  they  shall  subscribe  to  an 
oath  before  the  clerk  of  the  county  court  that  they  will  well  and  truly 
discharge  all  duties  that  may  devolve  upon  them  by  law. 

(4)  On  Tuesday  before  the  first  Monday  in  January,  April,  July, 
and  October  of  each  year  the  revenue  commissioners  herein  provided 
for  shall  meet  and  critically  examine  the  settlements  of  the  county  judge 
or  chairman  of  the  county  court,  with  all  the  collecting  officers  of  the 
county.     They  shall  inspect  the  reports  of  those  collecting  officers  made 
to  said  judge  or  chairman,  and  the  books  of  said  officers  if  necessary. 
They  shall  also  carefully  examine  the  financial  report  of  the  said  judge 
or  chairman,  which  is  hereby  required  to  be  made  quarterly  and  be 
spread  in  full  on  the  minutes  of  the  county  court.     They  shall  examine 
the  checks  and  warrants  on  which  disbursements  from  the  treasury 
have  been  made  and  compare  these  with  the  books  of  the  trustee.     They 
shall  ascertain  what  warrants  have  been  drawn  by  said  judge  or  chair- 
man during  the  preceding  quarter,  which  of  these  have  been  paid,  which 
have  been  registered  with  the  trustee  and  remain  unpaid,  and  how 
many,  if  any,  have  been  either  registered  or  paid.     The  revenue  com- 
missioners in  each  case  shall  look  to  see  that  the  balances  as  stated  in 
the  report  of  said  judge  or  chairman  correspond   with  the  balances 
shown  to  be  on  hand  by  the  books  of  the  trustee  and  exhibit  of  the 
cash  or  assets  which  he  has  or  should  have  on  hand.     The  revenue 
commissioners  shall  report  in  writing  at  the  end  of  each  quarter  the 
result  of  their  investigation,  and  it  shall  be  their  special  duty  to  call 
attention  to  any  neglect  or  violation  of  duty  which  they  may  observe 
on  the  part  of  any  official. 

(5)  The  revenue  commissioners  shall  be  paid  for  their  services  such 
compensation  as  may  be  allowed  them  by  the  quarterly  courts  of  the 
respective  counties,  not  to  exceed  three  dollars  per  day  for  the  expert 
accountant  and  two  dollars  per  day  for  the  other  two  members  for  the 
time  actually  engaged  in  the  discharge  of  their  duties;  provided,  that 
commissioners  shall  draw  pay  for  such  time  in  each  quarter  in  any 
county  having  a  population  of  50,000  or  over  under  the  federal  census 

99 


COMMITTEE  ox  TAXATION. 

of  1910  or  any  subsequent  census,  as  the  county  court  shall  determine, 
but  not  for  more  than  ten  days  in  any  county  having  a  population  of 
less  than  50,000  and  more  than  25,000  by  said  census  or  any  subsequent 
census,  nor  for  more  than  five  days  in  any  other  county  in  the  state. 

SECTION  75.  Be  it  further  enacted.  That — 

(1)  The  comptroller  shall   appoint  three  revenue   collectors,  here- 
after called  collectors,  who  shall  serve  under  such  appointment  for  a 
whole  period  of  two  years  from  the  date  upon  which  they  take  their 
respective  oaths  of  office.     The  jurisdiction  of  said  collectors  shall  be 
defined  by  the  comptroller,  who  shall  so  partition  the  various  counties 
of  the  state  as  to  give  to  each,  as  near  as  practicable,  a  territory  of 
equal  extent. 

Each  collector  shall  enter  into  a  bond  in  the  sum  of  ten  thousand 
dollars  in  some  solvent  surety  company,  to  be  approved  by  some  justice 
of  the  Supreme  Court  or  some  chancellor,  before  whom  the  oath  of  office 
is  taken,  said  bond  being  made  payable  to  the  State  of  Tennessee,  and 
conditioned  on  the  faithful  discharge  of  duty  and  for  the  covering  into 
the  treasury  of  all  moneys  by  him  collected. 

(2)  It  shall  become  the  duty  of  such  collectors  so  appointed  to  in- 
spect the  records  of  the  clerks  of  all  courts  of  record  in  this  state,  of  all 
justices  of  the  peace,  and  of  any  other  officials,  ex-officials,  or  individ- 
uals charged  at  any  time  with  the  collection  and  disbursement  of  state 
or  county  revenue,  or  both,  and  also  of  any  individual  who  has  wrong- 
fully collected  and  retained  any  state  or  county  revenue,  for  the  purpose 
of  ascertaining  whether  or  not  any  such  official,  ex-official,  or  individual 
has  properly  collected,  disbursed,  and  accounted  for  all  state  and  county 
revenues  of  whatsoever  nature  rightfully  or  wrongfully  coming  into 
his  hands.     The  comptroller  shall  have  the  power  to  direct  such  inves- 
tigations at  any  time  and  at  such  intervals  as  he  may  deem  expedient 
in  order  to  properly  protect  and  guard  the  public  revenue;  but  the  col- 
lectors are  authorized  to  proceed  in  such  cases  upon  their  own  motion,  if 
satisfied  that  an  investigation  should  be  made.     Any  taxpayer  may  re- 
quest an  investigation  of  any  official,  ex-official,  or  person  having  to  do 
with  the  collection  and  disbursement  of  state  and  county  revenues;  but 
it  must  appear  that  such  request  is  made  in  good  faith  and  in  the  in- 
terest of  the  public  welfare. 

(3)  The  collectors  shall  have  the  right  to  enter  the  office  of  any 
collecting  officer  named,  and,  upon  the  presentation  of  evidence  of  his 
authority,  shall  have  full  access  to  any  and  all  public  records  in  any 
way  pertaining  to  the  affairs  of  said  office  for  purposes  of  taxation, 
including  all  bank  books,  cashbooks,  or  other  records  pertaining  to  the 
public  revenues;   and  for  the  purpose  of  counting  the  same  said  col- 
lectors, shall  also  have  access  to  all  cash  on  hand  and  in  bank  at  any 
time  until  the  examination  is  completed  and  all  accounts  properly  ad- 
justed.    It  is  hereby  made  a  misdemeanor  for  any  official  to  refuse  to 
allow  said  collectors  full  and  free  access  to  all  the  books  and  records 
relating  to  his  office,  and  any  officials  so  refusing  shall  be  liable  to  a 
fine  of  not  less  than  one  hundred  dollars  nor  more  than  five  hundred 
dollars  for  each  refusal.     The  collectors  are  authorized  to  demand  of 
any  bank  a  statement  of  the  accounts  of  any  public  official,  ex-official, 
or  person  relating  in  any  way  to  any  moneys  belonging  to  his  office, 
consisting  of  state,  county,  school,  road,  highway,  bridge,  sinking  fund, 
or  any  other  public  revenues,  either  general  or  special,  and  to  person- 
ally inspect  such  records  should  the  exigencies  require. 

(4)  It   shall   be   the   further   duty    of   said    collectors    to    ascertain 
whether  or  not  any  revenues,  moneys,  fees,  or  costs  have  been  wrong- 
fully received,  retained,  certified,  or  disbursed  by  any  collecting  official 

100 


COMMITTEE  ON  TAXATION. 

or  ex-official,  and  also  whether  or  not  any  such  official  or  ex-official 
has  had  in  his  hands  for  more  than  two  years  any  moneys,  including 
witness  fees,  officers'  fees,  distributive  shares  of  estate,  funds  arising 
from  land  sales,  or  from  any  other  source  or  sources. 

(5)  It  shall  be  the  further  duty  of  said  collectors  to   investiprte, 
when  necessary,  all  bills  of  costs,  fees,  or  other  items  certified  to  the 
state  or  county  for  payment  out  of  the  state  or  county  treasury. 

(6)  Said  collectors  shall,  by  direction  of  the  comptroller,  present  and 
obtain  allowance  by  the  courts,  both  state  and  federal,  of  all  taxes, 
whether  privileges  or  ad  valorem,  due  the  state  from  property  or  its 
proceeds  in  the  hands  of  receivers  under  appointment  of  the  court  or 
otherwise  in  the  custody  of  the  law.     They  shall  likewise  bring  and 
prosecute  suits  upon  direction  of  the  comptroller  for  all   delinquent 
taxes  due  from  railroads,  street  railroads,  interurban  steam  and  elec- 
tric railroads,  express  companies,  news  companies,  telegraph  companies, 
telephone  companies,  electric  power  and  water  power  companies,  or  any 
other  taxpayer  who  is  required  to  pay  his  tax  direct  to  the  comptroller's 
office. 

(7)  Said  collectors,  after  making  any  collections  of  revenue,  shall 
make  monthly  report  of  same  under  oath  to  the  comptroller,  remit- 
ting all  state  revenue  to  the  state  treasurer  and  all  county  revenue  to 
the  county  judge  or  chairman  in  a  report  duly  sworn  to,  the  remit- 
tance being  payable  to  the  trustee  of  the  county.     A  copy  of  the  report 
to  the  county  shall  be  embraced  as  a  part  of  the  report  to  the  comp- 
troller, which  report  shall  show  in  detail  all  items  collected  and  to 
what  fund,  state  or  county,  the  same  belong. 

(8)  Said  collectors  shall  also  be  required  to  examine  at  such  stated 
intervals,  as  in  the  opinion  of  the  comptroller  it  is  deemed  advisable, 
the  reports  of  merchants  as  shown  by  the  records  of  the  county  court 
clerks,  and  to  make  careful  inquiry  into  the  correctness  of  the  same. 
In  making  such  inquiries,  the  collectors  are  authorized   and  empow- 
ered to  inspect  merchandise  stocks  and  demand  of  any  merchant  his 
stock  inventories,  insurance  account,  and  all  other  reports  or  data  in 
his  possession  pertaining  in  any  way  to  his  business  as  it  may  relate  to 
the  value  of  stock  carried  by  him.     In  case  of  false  statements,  they 
shall  have  the  power  to  demand  of  the  county  court  clerk  that  a  distress 
warrant  be  issued  for  the  collection  of  any  revenue  due  the  state  or 
county;   but  such  distress  warrant  shall  not  issue  until  after  said  de- 
linquent merchant  is  cited  before  the  clerk,  and,  upon  a  hearing  of  the 
matter,  said  merchant  is  found  to  be  delinquent  and  the  amount  of  the 
ad  valorem  tax  is  fixed  by  the  clerk,  together  with  all  legal  interest, 
penalties,  and  costs. 

(9)  Said  collectors  shall  inspect  the  list  of  privilege  taxpayers  as 
shown  by  the  records  of  the  several  county  court  clerks  of  the  state, 
and  ascertain  whether  or  not  any  person,  firm,  or  corporation  is  exer- 
cising, or  has  previously  exercised,  any  privilege  without  first  having 
procured  a  proper  license,  in  a  proper  manner,  under  the  law.     Should 
it  appear  to  any  collector  that  any  person,  firm,  or  corporation  is  exer- 
cising, or  has  already  exercised,  any  privilege  or  privileges  without  first 
having  taken  out  a  license  therefor,  as  required  by  law,  he  shall  pro- 
ceed against  him  before  the  county  court  clerk  for  the  collection  of 
such  license  and  back  license  in  the  manner  prescribed  for  assessing 
merchants  for  delinquent  ad  valorem  taxes  due. 

(10)  Said   collectors  shall  inspect  the  inventories  of  deceased  per- 
sons filed  by  administrators  and  executors  and  ascertain  whether  or  not 
such  estates  are  liable  to  assessment  or  back  assessment,  the  proceed- 
ings in  such  cases  to  be  according  to  the  provisions  of  section  30  of 

101 


COMMITTEE  ox  TAXATION. 

this  act  relating  to  assessment  of  real  and  personal  property  before 
the  county  trustee. 

(11)  The  collectors  shall,  upon  making  an  examination  of  the  ac- 
counts of  any  collecting  official  or  ex-officials,  present  to  such  official  or 
ex-official  a  statement  of  the  financial  status  of  his  office.     If  his  ac- 
counts be  correct,  the  collector  shall  so  certify  to  said  official  and  so 
report  to  the  state  comptroller.     Should  a  delinquency  appear  in  favor 
of  either  the  state  or  county,  or  both,  a  statement  showing  all  items  of 
delinquency  shall  be  presented  to  said  official  or  ex-official  for  payment 
by  him,  together  with  interest  and  an  added  penalty   of  fifteen  per 
centum.     Should  payment  be  declined,  formal  demand  shall  then  be 
made  upon  such  delinquent  and  his  bondsmen  for  payment  of  such 
claim  in  full.     Should  payment  then  be  refused,  it  shall  become  the 
duty  of  the  collector  promptly  to  report  the  fact  to  the  comptroller, 
whose  duty  it  shall  be,  in  that  event,  to  direct  the  district  attorney  to 
collect  said  delinquent  moneys  by  suit  or  otherwise,  the  suit  to  be  en- 
tered either  in  the  circuit  or  chancery  court  in  the  name  of  the  state 
on  relation  of  the  collector.     Upon  recovery  being  made,  such  revenue 
so  collected  shall  be  paid  over  to  the  collector,  including  all  interest 

.and  penalties,  whose  duty  it  shall  be  to  report  the  same  as  if  paid  direct 
to  him  by  said  delinquent,  the  fifteen  per  centum  penalty  in  either  case 
to  be  paid  into  the  state  treasury  as  a  part  of  a  general  fund  provided 
for  defraying  the  expenses  in  connection  with  such  investigations  and 
collections. 

(12)  Whenever  they  have  cause  to  think  that  any  property  or  privi- 
lege has  been  omitted  from  taxation  or  has  been  under-assessed  in  the 
manner  referred  to  in  section  30,  said  collectors  shall  make  motions 
before  the  proper  officials  for  the  assessment  thereof  or  the  correction 
or  readjustment  of  the  assessment  thereof. 

(13)  It  shall  be  the  duty  of  said  collectors  to  make  such  recommen- 
dations to  the  comptroller  as  conditions  may  require  regarding  the  di- 
rection to  the  district  attorney  to  assist  in  making  either  the  assess- 
ment, correction,  or  readjustment  of  any  tax  assessment  or  the  collec- 
tion of  any  public  revenue;  and  it  shall  be  the  duty  of  the  state  comp- 
troller to  direct  said  district  attorney,  if  in  his  opinion  his  services  are 
necessary,  to  institute  suit. 

(14)  All  merchants'  and  privilege  taxes  collected  by  proceedings  be- 
gun by  the  said  collectors  shall  be  paid  by  the  taxpayer  direct  to  the 
county  court  clerk,  including  all  interest  and  a  penalty  of  fifteen  per 
centum,  whose  duty  it  shall  be  to  report  the  same  to  the  state  and 
county  as  he  does  his  regular  collections,  except  the  penalty  of  fifteen 
per  centum,  which  he  shall  pay  over  to  the  collector,  who  shall  report 
the  same  to  the  comptroller,  as  provided. 

(15)  The  comptroller  is  authorized  to  direct  a  district  attorney  to 
bring   proceedings   for   the   collection   of   any   merchants'   or   privilege 
taxes,  where  h.e  deems  it  advisable  and  necessary,  such  proceedings  to 
be  in  the  name  of  the  state  on  relation  of  the  collector.     Suits  may  be 
brought  directly  against  any  privilege  taxpayer  by  motion  in  the  cir- 
cuit court  or  bill  in  the  chancery  court  by  direction  of  the  comptroller, 
whether  the  privilege  be  payable  to  the  county  court  clerk  or  direct  to 
the  comptroller. 

(16)  The  three  collectors  herein  provided  for  shall  each  receive  a 
salary  of  twenty-five  hundred  dollars  per  annum,  payable  monthly  upon 
warrant  of  the  comptroller  drawn  upon  the  general  fund  appropriated 
for  the  payment  of  the  salaries  and  expenses  of  his  office. 

(17)  The  said  collectors  shall  in  no  manner  be  entitled  to  retain 
the  fifteen  per  centum  penalties  collected  by  them,  or  any  portion  there- 
of: but  it  shall  be  their  duty  to  report  such  penalties  to  the  comptroller, 

102 


COMMITTEE  <>.\  TAXATION. 

remitting  the  same  monthly  to  the  state  treasurer,  whose  duty  it  shall 
be  to  set  the  same  aside  to  a  special  penalty  account,  to  be  used  and 
paid  out  upon  the  official  warrant  of  the  comptroller  to  defray  the  ex- 
penses of  expert  accountants  employed  in  making  investigations  under 
the  direction  of  the  comptroller  and  the  said  collectors,  expenses  inci- 
dent to  the  duties  of  said  three  collectors,  c.osts,  and  all  other  actual 
necessary  expenses  properly  incurred. 

(18)  All  expense  accounts  rendered  by  the  collectors  or  those  en- 
gaged by  or  through  them,  by  and  with  the  consent  and  approval  of  the 
comptroller,  shall  be  fully   itemized  and  sworn  to  before  being  filed 
with  the  comptroller  for  payment  as  provided. 

(19)  Nothing  contained  herein  shall  be  taken  to  confer  on  collectors 
of  revenue  the  power  of  back  assessment  for  municipal  taxes. 

SECTION  76.  Be  it  further  enacted.  That  it  shall  be  the  duty  of  the 
comptroller  to  prescribe  a  uniform  system  of  bookkeeping,  designating 
the  character  of  books,  reports,  receipts,  and  records,  and  the  method 
of  keeping  same,  in  all  state  and  county  offices  in  the  state  handling 
state  and  county  revenue;  and  it  shall  be  the  duty  of  all  state  and 
county  officials  to  adopt  and  use  said  system  and  the  kind  and  char- 
acter of  books,  reports,  and  records  as  designated  by  the  comptroller; 
but  nothing  in  this  section  is  intended  to  give  the  comptroller  the  right 
to  require  the  adoption  or  purchase,  by  said  officials  or  by  said  counties, 
of  the  books  or  other  records  of  any  particular  publisher  or  publishers. 

SECTION  77.  Be  it  further  enacted,  That  all  laws  or  parts  of  laws 
upon  the  subject  of  the  assessment  and  collection  of  taxes  and  the  sale 
of  land  for  taxes  in  conflict  with  the  provisions  of  this  act  are  hereby 
repealed.  This  repeal  shall  operate  as  to  all  taxes  assessed  under  this 
act,  but  shall  not  operate  so  as  to  interfere  with  the  taxes  assessed 
prior  to  the  passage  of  this  act,  except  as  hereinbefore  specially  other- 
wise provided. 

SECTION  78.   Be  it  further  enacted,  That — 

(1)  It  shall  be  the  duty  of  each  judge  of  the  courts  of  the  state  hav- 
ing criminal  jurisdiction  to  specially  give  in  charge  to  and  have  the 
grand  jury  of  his  court  specially  investigate  all  offenses  defined  in  this 
act,  and  inquisitorial  power  is  given  to  grand  juries  in  the  premises. 

(2)  It  shall  also  be  the  duty  of  the  respective  district  attorneys  of 
this  state,  upon  information  or  at  the  request  of  any  reputable  citizen 
of  the  state,  to  investigate  and  prosecute  ex  officio  all  the  offenses  de- 
fined in  this  act. 

SECTION  79.  Be  it  further  enacted,  That  each  section,  subdivision, 
and  paragraph  of  this  act  is  hereby  declared  to  be  a  separate  and  inde- 
pendent clause  from  any  other  section,  subdivision,  or  paragraph  here- 
of; and  the  illegality  or  invalidity  of  any  section  or  of  any  subdivision 
or  of  any  paragraph  hereof  shall  not  affect  any  other  section  or  para- 
graph hereof,  as  such  other  sections  and  paragraphs  would  have  been 
enacted  if  any  such  illegal  or  invalid  section  or  paragraph,  if  any,  had 
been  omitted  or  stricken  out. 

SECTION  80.  Be  it  further  enacted,  That  all  laws  and  parts  of  laws  in 
conflict  with  this  act  be,  and  the  same  are  hereby,  repealed. 

SECTION  81.  Be  it  further  enacted.  That  this  act  take  effect  from  and 
after  its  passage,  the  public  welfare  requiring  it. 

103 


COMMITTEE  ON  TAXATION. 


TO  QUIET  LAND  TITLES. 

AN  ACT  to  quiet  titles  and  ownership  in  lands,  and  provide  for  the 
proper  taxation  of  claims  thereon. 

SECTION  1.    Be  it  enacted  ~by  the  General  Assembly  of  the  State  of 
Tennessee,  That — 

(1)  For  the  purpose  of  taxation,  all  claims  to  land  in  this  state  or  to 
any  interest  therein  shall  be  considered,  treated,  and  held  to  be  legal 
and  valid. 

(2)  It  shall  be  the  duty  of  each  and  every  owner  or  claimant  of  land 
or  of  any  interest  therein  to  pay  all  taxes  which  may  hereafter  be  as- 
sessed against  such  land  or  claim  thereto  or  against  him  as  the  owner 
or  claimant  of  such  land  or  of  any  interest  therein,  or  which  has  been 
or  should  have  been  assessed  for  the  years  1911,  1912,  1913,  and  1914 
against  such  land  or  claim  thereto  or  against  such  owner  or  claimant 
or  those  under  whom  he  holds  or  claims. 

(3)  It  shall  be  the  duty  of  every  owner  or  claimant  of  land  in  this 
state  or  of  any  interest  therein,  on  or  before  the  first  day  of  June  in 
each  and  every  year,  to  file  with  the  tax  assessor  for  the  county  in 
which  the  land  lies  a  statement  so  describing  the  land  claimed  that  it 
can  be  identified  therefrom,  showing  the  area  thereof,  what  interest  in 
such  land  is  claimed  by  the  party  filing  such  statement,  and  the  source 
from  which  he  claims  title,  in  which  shall  be  stated  the  name  of  the 
claimant's  grantor,  the  date  and  place  of  registration  of  the  deed,  if 
held  by  deed;  or  if  not  so  held,  on  what  basis  claimant's  title  rests, 
showing  the  person  and  instrument  or  facts  through  which  the  claimant 
holds;  or  if  held  or  claimed  by  possession,  on  what  basis  such  adverse 
possession  is  claimed;  or  if  claimed  as  heir,  from  whom  such  claim  is 
derived,  and  on  what  facts  such  claim  is  based ;  and  it  shall  be  the  duty 
of  every  such  owner  or  claimant  to  pay  all  taxes  which  may  be  assessed 
against  such  land,  interest  therein,  or  claim  thereto. 

(4)  The  fact  that  said  land  has  been  listed  for  taxation,  or  the  taxes 
have  been  paid  thereon  by  another  claimant,  shall  not  relieve  against 
the  duties  herein  imposed;   and  any  such  payment  shall  in  no  sense 
inure  to  the  use  or  benefit  of  any  claimant  not  holding  under  privity  of 
title  with  the  claimant  by  whom  such  taxes  may  have  been  paid. 

(5)  If  said  land,  or  any  interest  claimed  therein,  has  not  been  as- 
sessed for  taxation  for  the  years  1911,  1912,  1913,  or  1914,  the  owner  or 
claimant  thereof  shall,  on  or  before  December  1,  1915,  file  with  the 
county  trustee  such  statement  as  has  been  above  prescribed,  and  which 
shall  be  as  definite  and  particular  as  above  prescribed;  and  the  trus- 
tee shall  assess  the  same  as  picked-up  taxes  for  the  omitted  year  or 
years  at  its  fair  cash  value,  and  the  owner  or  claimant  shall,  within 
thirty  days  thereafter,  pay  all  such  taxes  as  may  be  thus  assessed,  to- 
gether with  interest  thereon  at  the  rate  of  six  per  centum  per  annum 
from  the  first  day  of  March  of  the  year  following  the  year  for  which 
such  assessment  should  have  been  made. 

(6)  If  any  such  owner  or  claimant  shall  fail  to  list  the  land  to 
which  he  sets  up  a  claim  for  assessment  or  taxation  for  the  years  men- 
tioned, on  or  before  December  1,  1915,  or  shall  fail  to  pay  the  taxes 
charged  or  which  should  have  been  charged  against  such  land  or  inter- 
est therein  or  against  him  as  the  owner  or  claimant  thereof  upon  said 
dates  for  such  years,  or  shall  fail  to  list  such  land,  interest  therein  or 

104 


COMMITTEE  ON  TAXATION. 

claims  thereto,  for  any  subsequent  year,  on  or  before  June  1  of  such 
year  as  herein  provided,  or  to  pay  the  taxes  thereon  when  the  same 
shall  become  due,  such  owner  or  claimant  is  hereby  declared  to  be  de- 
linquent; and  the  failure  on  his  part  either  to  list  the  property  to 
which  he  sets  up  a  claim  in  any  manner  or  form  with  the  proper  tax 
official  or  to  pay  the  taxes  assessed  against  such  land  or  interest  therein 
or  against  him  as  the  owner  or  claimant  thereof,  shall  be  cause  for  for- 
feiture of  his  interest  in  such  land  and  operate  as  a  transfer  to  the 
State  of  Tennessee  of  all  his  title,  interest,  or  claim  thereto  in  a  pro- 
ceeding to  be  instituted  for  that  purpose  as  herein  provided.  If  a 
cause  for  forfeiture  as  herein  provided  accrues,  the  same  shall  be  ex- 
tinguished if  the  owner  or  claimant  or  any  other  party  or  parties  de- 
raigning  title  from  such  owner  or  claimant  shall,  within  the  time  and 
in  the  manner  provided  in  this  act,  pay  the  taxes  charged  and  which 
should  have  been  charged  against  such  land  or  interest  therein  or 
against  such  owner  or  claimant  thereof  for  each*  and  all  of  said  years 
for  which  he  or  those  under  whom  he  claims  are  delinquent,  together 
with  the  interest  and  penalties  provided  by  law  for  the  nonpayment 
of  taxes. 

(7)  If  any  owner  or  claimant  of  any  land  in  Tennessee  fails  to  list 
the  same  with  the  trustee  as  above  provided,  or  if  such  land  shall  be 
listed  for  any  year  or  years  and  the  taxes  assessed  thereon  for  all  or 
any  of  such  years  shall  not  be  paid  within  the  time  provided  by  law,  it 
shall  be  the  duty  of  the  trustees  of  the  various  counties  of  the  state 
within  thirty  days  thereafter  to  give  notice  to  the  comptroller  of  the 
nonlisting  of  such  property  or  the  nonpayment  of  the  taxes  assessed 
thereon  for  said  years;   and  if  any  such  owner  or  claimant  shall  fail 
so  to  list  his  said  claims  with  the  county  assessor  as  herein  provided, 
then  it  shall  be  the  duty  of  the  assessor  within  thirty  days  thereafter  to 
give  such  notice  to  the  comptroller. 

(8)  Upon  the  receipt  of  any  such  notice  from  the  assessor  or  the 
trustee,  or  other  satisfactory  information  to  the  effect  that  any  land  or 
any  claim  thereto  has  not  been  listed  for  taxation  as  herein  provided, 
or  that,  if  listed,  the  tax  thereon  has  not  been  paid  within  the  time 
provided  by  this  act  for  the  payment  of  current  taxes  prior  to  delin- 
quency, then  and  in  every  such  case  it  shall  be  the  duty  of  the  comp- 
troller to  institute  proceedings  in  the  name  of  the  State  of  Tennessee, 
by  himself  as  relator,  by  bill  or  petition,  either  in  the  circuit  or  in  the 
chancery  court  of  the  county  in  which  any  portion  of  such  land  lies,  for 
the  purpose  of  having  forfeiture  of  such  land  or  of  such  claim  thereto 
judiciously  declared. 

Such  petitions  shall  state  the  name  of  the  owner  or  claimant  of  the 
land  or  interest  therein,  if  such  name  be  known,  against  whom  judg- 
ment or  forfeiture  is  prayed,  a  description  of  the  land  or  claim  thereto, 
and  the  years  for  which  the  same  has  not  been  listed  for  taxation,  or, 
if  listed,  the  years  for  which  the  taxes  have  not  been  paid,  and  the 
,  amount  of  taxes  due  to  the  state  and  county,  if  the  same  has  been  as- 
sessed; but  no  error  in  any  such  allegations  shall  affect  the  validity  of 
the  proceedings.  If  the  name  of  the  owner  or  claimant  of  any  land  or 
of  any  interest  therein  or  of  the  claim  thereto  be  known,  such  name 
shall  be  stated  in  the  petition;  but  if  said  name  or  names  be  unknown, 
then  it  shall  be  so  stated  in  the  petition;  and  in  such  cases  publication 
shall  be  made  for  the  unknown  owners  or  claimants  of  said  land  in  the 
manner  and  form  now  provided  by  law  for  publications  for  nonresi- 
dents in  suits  to  which  they  are  necessary  parties,  and  the  case  shall 
proceed  as  other  causes  in  the  court  in  which  it  is  pending. 

If,  upon  the  hearing  of  any  such  cause,  it  shall  be  ascertained  that 
the  land  or  the  interest  therein  or  claim  thereto,  on  account  of  which 

105 


COMMITTEE  ox  TAXATION. 

such  proceedings  argse,  have  been  properly  listed  for  taxation  and  all 
taxes  paid  thereon  as  required  by  this  act  and  other  laws  of  this  state, 
the  proceedings  shall  be  dismissed  as  to  such  land,  interest  therein,  or 
claim  thereto;  but  if  otherwise,  then  the  court  shall  order,  adjudge,  or 
decree  the  year  or  years  and  the  amount  of  state  taxes  and  the  amount 
of  county  taxes  for  which  such  forfeiture  is  had,  and  that  all  right,  title, 
interest,  and  claim  of  the  parties  to  the  said  cause  be,  and  the  same 
shall  thereby  immediately  be  and  become,  divested  out  of  said  parties 
and  vested  in  the  State  of  Tennessee,  with  the  right,  however,  in  the 
previous  owner  or  claimant,  or  any  person  deraigning  title  or  claim 
through  such  owner  or  claimant,  to  repurchase  the  said  land  or  claim 
so  divested  at  any  time  within  ninety  days  from  any  such  final  decree 
upon  payment  to  the  clerk  of  the  court  for  the  benefit  of  the  parties 
entitled  thereto  of  all  state  and  county  taxes  for  which  such  land,  inter- 
est therein  or  claim  thereto,  has  been  forfeited,  together  with  interest 
and  penalties  thereon,  as  they  are  in  this  act  imposed  upon  delinquent 
taxes  from  the  date  when  such  taxes  should  have  been  paid,  and  to- 
gether with  all  court  costs  and  an  added  penalty  of  fifteen  per  centum 
on  the  total  collection,  which  added  penalty  shall  be  reported  to  the 
comptroller  and  remitted  to  the  treasurer  of  the  state  for  the  credit  of 
the  special  penalty  account. 

(9)  Any  party  aggrieved  by  the  final  decree  of  any  circuit  or  chan- 
cery court  in  any  proceeding  herein  authorized  shall  have  the  right  of 
appeal  as  in  other  causes. 

(10)  All  judicial  proceedings  instituted  under  the  authority  of  this 
act  shall  be  at  issue,  and  shall  be  tried  at  the  first  term  of  court  next 
following  the  service  of  process,  either  actual  or  constructive,  any  rule 
of  court  or  practice  applicable  to  other  cases  to  the  contrary  notwith- 
standing;  and  all  cases  instituted  under  this  act  shall  have  priority 
as  state  revenue  cases  over  all  other  cases,  and  shall  be  tried  as  soon 
as  they  are  at  issue. 

(11)  No  cost  bond,  appeal  bond,  or  other  bond  shall  be  required  of 
the  state  or  of  the  comptroller  when  acting  on  behalf  of  the  state  or  on 
behalf  of  the  state  and  any  county  thereof  in  any  proceedings  brought, 
prosecuted,  or  defended  under  any  provision  of  this  act. 

(12)  Either  the  original  or  a  certified  copy  of  the  record  of  any  pro- 
ceedings under  which  any  forfeiture  or  sale  authorized  by  this  act  may 
be  had  shall  be  competent  evidence  in  any  other  or  subsequent  suit  or 
action  involving  the  same  land  or  interest  therein,  regardless  of  who 
may  be  the  parties  to  such  other  or  subsequent  suit,  and  shall  be  con- 
clusive evidence  of  all  facts  that  may  be  adjudicated  therein. 

(13)  Any  delinquent  may  at  any  time  prior  to  suit  pay  the  taxes 
assessed,  or  which  should  have  been  assessed,  against  the  land  which 
he  claims  or  his  interest  therein,  together  with  the  interest  and  penal- 
ties provided  by  law,  and  thus  cancel  and  extinguish  the  cause  of  for- 
feiture.    After  the  institution  of  suit  as  herein  provided,  any  delin- 
quent may  still  cancel  and  extinguish  the  cause  of  forfeiture  by  paying 
such  taxes,  interest,  costs,  and  penalties,  plus  the  court  costs  and  a  rea- 
sonable attorney's  fee,  in  which  latter  case  the  value  of  the  land  or  in- 
terest therein  or  claim  thereto  shall  be  considered  and  assessed  at  the 
value  stated  in  the  bill  or  petition. 

(14)  If  there  be  any  adverse  claimant  to  all  or  any  portion  of  the 
land  or  interest  or  claim  thereto  which  has  been  forfeited  to  the  state 
under  the  provisions  of  this  section,  and  if  such  adverse  claimant,  or 
those  through  whom  he  deraigns  title,  has  paid  taxes  for  the  five  suc- 
cessive years  last  on  the  lands  so  adversely  claimed  by  him,  such  ad- 
verse claimant  shall  have  the  right  at  any  time  after  ninety  days  (un- 
less the  previous  owner  of  such  forfeited  land  or  claim  has  within  said 

106 


COMMITTEE  ox  TAXATION. 

period  of  ninety  days  repurchased  the  same  from  the  state),  and  within 
one  year  from  the  judgment  or  decree  of  forfeiture,  to  purchase  all  the 
right,  title,  interest,  and  claim  so  acquired  by  the  state,  in  so  far  as  it 
conflicts  with  the  land  upon  which  he  has  so  paid  the  taxes,  upon  pay- 
ment to  the  clerk  of  the  court  in  which  such  proceedings  were  had  of 
the  court  costs  and  all  expenses  of  the  proceedings  by  which  such  for- 
feiture was  procured,  excluding  the  taxes,  interest  and  penalties  there- 
on, but  including  the  added  penalty  of  fifteen  per  centum,  which  shall 
be  credited  as  provided  in  subdivision  8  hereof. 

(15)  The  Tennessee  Tax  Commission  is  authorized  to  prescribe  and 
to  furnish  the  forms  of  all  reports  to  be  made  by  the  county  tax  as- 
sessors, county  trustees,  clerks  of  court,  and  other  persons,  in  pursu- 
ance of  this  section;  and  the  information  to  be  called  for  by  said  com- 
mission shall  in  no  wise  be  limited  to  the  matters  specified  herein,  but 
may  be  as  broad,  comprehensive,  and  in  such  detail  as  said  commission 
may  see  fit. 

The  commission  is  also  hereby  authorized  to  prescribe  the  forms  of 
deed  or  other  instrument  to  be  executed  by  the  clerk  of  court  upon  the 
repurchase  of  any  lands,  interest  therein  or  claim  thereto,  by  the  party 
whose  claim  may  have  been  forfeited. 

The  commission  shall  also  direct  what  investigation,  if  any,  shall  be 
made  by  such  clerks  before  permitting  any  property  or  claim  thereto 
so  forfeited  to  be  purchased  by  any  adverse  claimant,  as  provided  in 
subdivision  14  of  this  section,  and  the  form  of  any  deed  or  other  instru- 
ment which  shall  be  executed  by  the  clerk  of  court  to  evidence  any  such 
purchase. 

(16)  In  any  action  affecting  the  title  to  real  estate  it  shall  be  com- 
petent for  any  party  thereto  to  plead  that  any  interest,  title,  or  claim 
therein  sought  to  be  set  up  (whether  by  the  plaintiff  or  by  the  defend- 
ant) has  not  been  listed  for  taxation  by  the  party  proposing  to  set  up 
such  interest,  title,  or  claim,  or  by  his  privies  in  interest,  for  any  two 
years  out  of  a  period  of  seven  years  next  preceding  the  institution  of 
such  action;   and  it  shall  also  be  competent  to  plead  that  such  party, 
or  his  privies  in  interest,  have  failed  to  pay  taxes  on  any  such  interest, 
title,  or  claim  for  any  two  years  out  of  a  period  of  seven  years  next 
preceding  the  institution  of  such  action;   and  either  of  such  pleas,  if 
sustained,  shall  be  a  complete  plea  in  bar  and  in  defense  to  the  asser- 
tion of  such  interest,  title,  or  claim. 

SECTION  2.  Be  it  further  enacted,  That  all  laws  and  parts  of  laws  in 
conflict  with  this  act  be,  and  the  same  are  hereby,  repealed,  and  that 
this  act  shall  take  effect  from  and  after  its  passage,  the  public  welfare 
requiring  it. 


107 


COMMITTEE  ON  TAXATION. 


TO  PROVIDE  FOR  THE  ASSESSMENT  OF 
SLEEPING  CAR  PROPERTY. 

AN  ACT  to  amend  chapter  48  of  the  printed  acts  of  the  General  Assem- 
bly of  the  State  of  Tennessee  for  the  year  1901,  being  entitled  "An, 
Act  providing  for  the  assessment  of  taxes  on  railway  cars  used  with- 
in this  State,  but  owned  by  persons,  firms,  corporations,  or  compa- 
nies having  their  residence  outside  of  the  State,"  so  as  to  extend  the 
provisions  of  said  act  to  passenger  cars. 

SECTION  1.  Be  it  enacted  by  the  General  Assembly  of  the  State  of 
Tennessee,  That  section  1  of  chapter  48  of  the  printed  acts  of  the 
General  Assembly  of  the  State  of  Tennessee  for  the  year  1901,  being 
entitled  "An  Act  providing  for  the  assessment  of  taxes  on  railway  cars 
used  within  this  State,  but  owned  by  persons,  firms,  corporations,  or 
companies  having  their  residence  outside  of  the  State,"  be  amended  by 
striking  out  the  words  "  to  passenger  cars,  nor  " — so  that  said  section  1 
shall  read: 

"  SECTION  1.  Be  it  enacted  by  the  General  Assembly  of  the  State  of 
Tennessee,  That  all  railway  cars  used  in  this  state,  but  belonging  to  a 
person,  firm,  corporation,  or  company  having  a  residence  or  situs  out- 
side of  this  state,  are  and  shall  be  subject  to  taxation  under  the  provi- 
sions of  chapter  5  of  the  acts  of  1897  and  the  further  provisions  of  this 
act;  provided,  this  act  shall  not  apply  to  cars  owned  by  persons,  firms, 
companies,  or  corporations  operating  lines  of  railways." 

SECTION  2.  Be  it  further  enacted,  That  this  act  take  effect  from  and 
after  its  passage,  the  public  welfare  requiring  it. 


108 


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